A mother has a unique way of teaching her young daughter about the importance of money and it has caught the attention of other parents. It has generated a HUGE reaction on social media with mostly positive responses.
Essence Evans posted “I make my 5 year old pay rent,” on her Facebook page. As the father of 2 girls, ages 7 and 9, this caught my attention. Evans wrote that she gives her daughter a $7 allowance, but she doesn't get to keep all of the money.
The mom has the child give her $5 back. She 'charges' the child $1 for rent, $1 for water, $1 for electricity, $1 for cable and $1 for food. Her daughter gets to use the remaining $2 for whatever her young heart desires.
The mother went on to say, “Now, what she doesn’t know is the $5 is actually going away in her savings account which I will give back to her when she turns 18, so if she decides to move out on her own she will have $3,380 to start off.”
I think this a great life lesson for the child, even though it might take her a few years to completely understand. If the plan works she'll grow up to know the value of budgeting, saving and have a nice amount of money to use when she moves out on her own.
The mother's post has been shared hundreds of thousands of times and has received mostly positive responses. There may be many more parents that follow her lead to help teach their children about money in the future.