I think that it’s crucial to teach the kids the mindset early for investing and trying to manage money well. The little man has inquired about getting himself a little credit card and I am absolutely against it for the basic reason that he hasn’t learned money management skills yet in order to properly balance a credit card amount on our side. My wife settled and got him a little gift card but I told him, her as well, that for his age cash is a far better way to manage money and learn about it because you know you have 5$ in your hand and the item you are looking at is 6.75 so you can’t afford it. With a credit card, those limits are largely gone and not a very good tool to teach financial literacy.
I know that it’s going to eventually come to be but I am trying to hold it off a few more years. He’s a really smart kid and does well with a lot of things but I want him to learn the proper basics, one of the things he struggles with the most. He wants to ride the bicycle at full speed instead of going slowly and yes it does work with momentum but then you don’t learn how to manage the corners and all that. Calling happens and hurts but maybe I prefer falling at a slower speed and getting some footing underneath me before advancing. He is not that way and it’s hard lol. Lots of little arguments!
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I completely agree with the cash idea. Having "real" money means that you can see it come and go and once in hand, it is harder to let go of. It becomes yours. The cards don't do this, digital shopping is even more removed from ownership - it is no wonder there is mounting debt.
For reference, you are screwed, because you have a boy! They are insane. However, I have the opposite issue with Smallsteps, where she is a little too concerned with things - a little too safe. It is good in some ways, but will become a detriment later in life unless she can learn to balance and evaluate well.