Tuesday, November 08, 2005
Pierce’s Financial Awakening
When Pierce was born Nora and I made the decision that any time he (or subsequently Anna) received a momentary gift, half would be put into college savings and the other half used for more immediate concerns. We even had a caveat that if the money was not needed all 100% would be put towards savings. To date, all of those wonderful gifts have gone 100% into savings. Until now.
For their birthdays this year both Pierce and Anna received birthday checks. While Anna is still oblivious to their nature, Pierce now has a basic understanding of what they are. This weekend he asked when he could go to Toys R Us to spend his “credit”. Nora and I discussed how much of a budget this toy-rich, just-had-a-birthday-and-the-holidays-are-around-the-corner-kid could have for spending money and decided that both Pierce and Anna could have $10 each to spend.
Before heading off to the store last night, Nora and I explained to Pierce what a budget was and how this applied to the basic limits of his purchasing power. His question? What can I get for $10 –apparently he thought that for any given amount there was one, and only one thing, that could be purchased. Hopefully we got him straightened out.
I had other commitments last night, so Nora took both kids to Toys R Us. She gave Pierce the cash to hold (he was very excited). On entering the store Pierce immediately spotted what he wanted, an 8-pack of toy cars (for $9.99). Nora advised him that they should look around a bit, just in case he spotted something else he might like (Pierce good-naturedly agreed). But nothing else pushed his buttons. Nora helped Anna with toy selection (and held onto her money), with Anna ultimately picking a singing, plush Barney the Dinosaur.
When they got to the register Nora explained to Pierce how to buy his toy: give them the toy, wait for them to tell you how much, then give them the money. Pierce was so keyed up he put the money on the counter and held onto the toys.
-Eric (Dad)
For their birthdays this year both Pierce and Anna received birthday checks. While Anna is still oblivious to their nature, Pierce now has a basic understanding of what they are. This weekend he asked when he could go to Toys R Us to spend his “credit”. Nora and I discussed how much of a budget this toy-rich, just-had-a-birthday-and-the-holidays-are-around-the-corner-kid could have for spending money and decided that both Pierce and Anna could have $10 each to spend.
Before heading off to the store last night, Nora and I explained to Pierce what a budget was and how this applied to the basic limits of his purchasing power. His question? What can I get for $10 –apparently he thought that for any given amount there was one, and only one thing, that could be purchased. Hopefully we got him straightened out.
I had other commitments last night, so Nora took both kids to Toys R Us. She gave Pierce the cash to hold (he was very excited). On entering the store Pierce immediately spotted what he wanted, an 8-pack of toy cars (for $9.99). Nora advised him that they should look around a bit, just in case he spotted something else he might like (Pierce good-naturedly agreed). But nothing else pushed his buttons. Nora helped Anna with toy selection (and held onto her money), with Anna ultimately picking a singing, plush Barney the Dinosaur.
When they got to the register Nora explained to Pierce how to buy his toy: give them the toy, wait for them to tell you how much, then give them the money. Pierce was so keyed up he put the money on the counter and held onto the toys.
-Eric (Dad)
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