Mo' Money...No Problems!

Money moves people. 

My 7 year old son is currently learning about money and currency in his 1^st grade math class.  He quickly grasped the concepts of denominations and coins and related values.  Even though we don’t have a set “allowance” program in our home, I developed a behavior modification system that proved very effective:  Bank of Trust.

The Bank of Trust is a check-register with deposits and penalties columns.  Each evening, as we gather around the refrigerator to “celebrate” the choices of the day, we use this tool to help him identify the true “cost” associated with making choices.  When he makes a good choice (a series of desired outcomes established by us, the parents), he receives a deposit into his account—dated and noted on the ledger.  When he makes a choice rendering a negative consequence, he receives a penalty deduction.  The reverse of the ledger is an outline of all deposit credit actions and penalty withdraw fees.  We only address those listed, but took great time and consideration to develop desired outcomes.

Also featured on the reverse is a CATALOG, listing items for sale.  For instance, if he saves $20 he can go to the movies.  If he saves $3, he can get donuts on Sunday morning from the bakery.  He can choose to save or spend his earnings, another very important lesson—patience.  Items are priced well-above market value and are made available on Saturday of each week.  (Some are very basic, like being able to watch TV for an extra 10 minutes each evening.)

We introduced a concept it took me until I was 25 to fully understand and appreciate:  over-draft charges.  When his penalties exceed his deposits, he is in OVERDRAFT and the “Bank” seizes his assets.  Until he is able to earn the minimum balance back into his account ($5), his assets (toys) are frozen.  This has happened and, believe it or not, he took having his toys taken away quite well.  He worked very hard to earn them back and did so within (3) days. 

We post the General Ledger on the refrigerator for all to see and to remind him of the value of his choices.  During the evening transactions, we use fake money (thank you, Dollar Tree!) as tangible tools so they can physically see and touch what they’ve earned.  One parent plays the “teller” and distributes cash (making change or combining coins into currency) and then collects the cash in a checking deposit transaction (a Zip-Loc bag).  Again, the Zip-Loc is displayed on the refrigerator as a reminder.

This tool has worked well with getting chores done and modifying behaviors.  A simple reminder to “check your account to see if you can afford this choice” is a great way to change a behavior.  It also teaches mathematics and currency.  Even our 5 year old daughter has caught on by watching her brother earn money and now understands the concept of cash and is eager to open her checking account.