Patricia on money matters

This is the continuation of my post regarding shopping spree with my kids while at Wal-mart... Patricia wanted the same 20-in-1 DS package that her brother got worth $19.83 --

PATRICIA: "Mommy, can you just give this to me as a birthday present?"
ME: "Wouldn't you rather mommy gave you money for your birthday so you can put them in your bank account? If I pay for that now, there's no more birthday gift."
PATRICIA: "How much?"
ME: "Do you remember how much mommy gave you last year?"
PATRICIA: "$100?"
ME: "Yes." [I started giving them money for their birthday about 2 years ago. I just don't want to keep on buying toys anymore and they never appreciated books or clothes as birthday gifts.]
PATRICIA: "I don't know which is better." [She just don't want to waste all her money.]
ME: "Option 1, mommy pays for that, you save $19.83 today but no more birthday gift on your birthday. Option 2, you pay for this yourself right now and you will get $100 as your birthday gift on your birthday. Overall, you still made $80."
PATRICIA: "I don't get it Mommy."

Further explanation, she finally picked option #2.


Raquel said...

Good decision Patricia. [wink]

Anonymous said...

Each of my kids also have their own savings account. They put their birthday money and Christmas money there. Not just money they receive from me but from family and friends as well. But unlike yours, they do withdraw money every now and then. If they want to buy games and stuff, I tell them that we have to take and use the money from their accounts. And that's fine with them. I can't afford their hobbies anymore so they pay for these stuff themselves.

Junnie said...

nice way of giving them options..medyo advance nga lang yung part ng cost and benefit ;)

tell her the equity that she builds on getting it now means that she can use it already and that she doesn't get any interest in getting money several months after...

mas lalo ko pa atang pinagulo hahahah

JO said...

Thanks Raquel.

Hi Irene,
Well your kids are older than mine. I told my kids that they will get hold of their money once they turn 18.

Hi Junnie,
I don't think she will understand equity and interest yet.