I have two boys aged 6 and 7. More then anything they want an iPod Touch, like most of their friends and neighbours have. In the meantime they are reduced to scrounge time on mom and dad's iPhone and iPad when they are allowed.
Unfortunately for them, I insisted on two rules. One; they must pay for their iPod themselves and two; they must be ten years old. I'm not the most popular mom right now. They currently each have a Nintendo DS that can be found sometimes on the floor, sometimes under the bed, and sometimes they can not be found at all. It is my feeling that if they can't take care of their Nintendo DS an iPod is not going to fair any better.
From birthday money, they currently each have enough money for their iPod. They are now just patiently waiting till they reach the age of ten.
The other day, we read the comic book version of the book Rich Dad Poor Dad. It discusses how kids can get cash flow from creating their own business. That got them interested. From playing Cash Flow For Kids, they already know what an asset and liability is. They understand the advantage of purchasing "Doodads" with cash over credit cards; and they can recognise the trend of a stock. What can I say, they have been exposed.
So I decided to make a deal with them. If they come up with a business idea that they would operate and make money, I would allow for THAT money to go towards the purchase of an iPod now. They are not allowed to use their birthday money for an iPod, but if needed it could go towards the start up of their business.
In fact, we even located a website called "Kidpreneur" with information and resources for kids to start their own business.
So I asked Jerome, "What do you say? Want to do that?" His answer was "No, I'll wait till I'm ten." When I asked the same question to Patrick, he also answered in the negative. When I asked him why he said, "I'm scared."
Isn't funny that they would have the same excuse adults have for not taking charge of their financial future? They are either too scared or too lazy.
So in the meantime, we are discussing business ideas, and waiting for them to either, take action or reach the age of ten.