Monday, February 27, 2012

The Bank of Reynolds

So we have started something new in our family- or another "PROGRAM THAT MOM WILL DO FOR A WEEK" as Linzie called it.  Actually, despite her lack of faith in me (or her too sharp memory)  we have been doing this for over a month I think now and I see the fruit is forming on the tree!!!  Are you so curious now?  We have started a Family Economy.  So now you are probably wondering what that is.  The short version is that we now have a family bank called the "Bank of Reynolds" that is the funding for all of the Reynolds children's purchases.  The way to earn money is by completing  your jobs and responsibilites throughout the week.  The payment is quite generous, at least for a kid, and even more so if all of you finish all of your jobs.  but in return the kids have to buy all of their wants and needs. 
I can't take credit for the plan, it actually came from Richard and Linda Eyre.  They have inspired me to teach my kids to not be ENTITLED!! I read the book "The Entitlement Trap" and my daughter kept telling me I should put that book down, it was giving me strange ideas.  Now don't get the impression that this has gone smoothly.  It has not.  Don't get the impression the kids love it.  I think they love to hate it but love it.  The cool thing is that they no longer come to me for random purchases and actually think twice about how to spend their money.  In fact, I have heard such phrases as "I'm not paying that much for shipping!" and "I don't want to spend my money on that" thrown around the house... It is like music to my ears!!!
In the long run, I think I actually am spending less than before on kid's wants because they have to make their own purchases rather than asking me for things and the money they are earning is really just the money that I would have spent on them for the same items.  Of all of the methods we have tried in our family to teach financial responsibility, I have to tell you, this is the first one that I feel has really worked.
I especially like that the kids are able to make a goal for something that is important for them and actually feel the satisfaction of earning their own money to purchase it over time.  It is teaching patience and rewarding with personal satisfaction.
The last great thing I found to go along with this is a wonderful phone app called "Bank of Mom" that keeps track of all of my kids' earnings and purchases so we have our own "virtual bank" and the kids always know how much they have and have a record of where their money has gone.
So any of you moms out there looking for a financial solution for your kids, I really recommend this method.  Handling finances is so tricky anyway, I am convinced that start some independence early will pay off (literally) later.


  1. Great Post- I especially love the APP. I was just searching for something like that today and stumbled upon your blog in my reader and it just solved all of my problems! I am so sick of kids begging for 90.00 Nikes thinking they don't have to earn them. :) Of course, I never did that as a child- ha ha.... Off to purchase it now! Thanks Taunie

  2. Hooray for you! So fun to read this! Good luck!