Building Net Worth $6.00 at a Time

christmas-typography-graphicsfairy004Our daughter (soon to be 10) has the opportunity to earn up to $ 6.00 per week in allowance.  She is paid every Saturday night, which is when my husband and I “close out our budget week.”  We pay her the same way we get paid — electronically.  We tell her how much she earned and she can add it into her own personal budget spreadsheet on the computer.

Currently she is “funding” the following savings categories that she created:

  • Charity (this usually means buying items for Operation Christmas Child)
  • Church (she makes her own offerings as she sees fit)
  • American Girl
  • Animal Jam (online game – she has to pay for her membership or ask for it as a gift)
  • Clothes (for non-essentials, like earrings from Claire’s)

There is also a column for “Debt.”  She has been in debt to us before (for an Animal Jam membership promotion).  Dad does not accept only $1.00 in repayment either.  Debt is a bummer! This debt experience sent her looking for “extra” work around the house so she could have her allowance and have money to repay debt. This is what Dave Ramsey calls “getting yourself a second job delivering pizzas.”

Finally, there is a column for her savings account.

(Money allocated in budget + savings) – Debt = Net Worth, calculated right in the spreadsheet.

In nine more years she will be eligible for student loans, credit cards, and car loans! I truly hope her experiences now are giving her a foundation for making financial decisions down the road. My feeling is that the college years take you from making very few decisions about money to making money decisions that affect your financial health for a good part of adulthood… and THAT is a whole other post!

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5 thoughts on “Building Net Worth $6.00 at a Time

  1. Message In A Fold

    You are doing something for your daughter that will mark her life forever. I mean that in a GOOD way. When she goes to college and begins to receive all the crazy credit card offers being thrown at her she will be way ahead of the game by knowing what debt actually means. You and your husband are also reinforcing these lessons in your “Leading by example”. Good for you!
    Leslie

    Reply
    1. healthfulsave Post author

      Thanks Leslie for the kind words. My Dad was very subtle but present in my financial education. As a kid he gave me a subscription to the old Consumer Reports’ magazine “Penny Power” where real kids would review all the neat toys on tv. I LOVED that magazine. He also showed me in high school how if you invested a certain amount every month it could eventually grow to $1 Million dollars!
      As a kid in the 70s, the economy wasn’t so hot. I know my daughter is way more economically privileged than I was. I hope we aren’t setting her up for a shock. We are older parents and we struggled plenty in our 20s… That has never been her reality because we were well into our careers by the time she was on the scene.

      Reply
      1. Message In A Fold

        You are doing your daughter a favor. It took me too many years to learn the principles you are teaching her at this young age. I only wish that I had a better understanding of money matters in my early years.

        You will see for yourself, in a few years, how your teachings will affect others. She will be sharing her experiences with her peers and friends. Just don’t put your shoulder out patting yourself on the back when that happens. 😀 Just adding some levity here. But do enjoy the heartwarming moment when you see the fruits of your labor. 😀
        Leslie

  2. Crazynoiia

    Love this! The link between work and money…. the pressure of debt… importance of saving and giving …. making a budget … all in one little weekly budget meeting! great work!

    Reply

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