I have a son who just turned ten and we connected his youth spending account to his phone so he could buy things without our help (we don’t live in the US right now and it’s incredibly common here for kids younger than him to have phones and even use public transportation by themselves). We all get alerts any time he spends money, another weekly alert that shows us his balance, and a third alert when his weekly allowance is transferred to his account.
My kid is definitely on the impulsive side. He would be that kid in the experiment who would take one cookie now instead of two cookies later. I’ve seen his bank account dwindle slowly over the past six months. I’m trying to teach him the value of saving while still letting him have control over what he does with his money.
I’m considering letting his bank account earn interest at a rate of maybe 1% per week (funded by the bank of mom and dad). Then at the end of the month, I can show him that by saving his money, he now has an extra $5 so his next trip to the convenience store is basically free. Anybody try anything like this? Any other tips for kids who are a bit more impulsive? I want him to be able to do what he wants and not be afraid to spend money, but I want to balance it with understanding how not spending everything now can pay off later.