Comments on: Token Economy vs. Real Cash http://www.financingyourfamily.com/2007/09/19/token-economy-vs-real-cash/ Family Finance, Saving Money, Getting out of debt Fri, 05 Sep 2008 14:20:02 +0000 http://wordpress.org/?v=2.2 By: mark http://www.financingyourfamily.com/2007/09/19/token-economy-vs-real-cash/#comment-605 mark Fri, 21 Sep 2007 14:32:30 +0000 http://www.financingyourfamily.com/2007/09/19/token-economy-vs-real-cash/#comment-605 Thanks for the Additional insight Andrew. Thanks for the Additional insight Andrew.

]]> By: Real Estate » Token Economy vs. Real Cash http://www.financingyourfamily.com/2007/09/19/token-economy-vs-real-cash/#comment-603 Real Estate » Token Economy vs. Real Cash Fri, 21 Sep 2007 09:41:57 +0000 http://www.financingyourfamily.com/2007/09/19/token-economy-vs-real-cash/#comment-603 [...] unknown wrote an interesting post today onHere’s a quick excerptThis is a question for readers who have children. How soon is too soon to start teaching children about money? When you do start, which is better teaching them with play money (token economy) or real money? Why? … [...] […] unknown wrote an interesting post today onHere’s a quick excerptThis is a question for readers who have children. How soon is too soon to start teaching children about money? When you do start, which is better teaching them with play money (token economy) or real money? Why? … […]

]]> By: Andrew http://www.financingyourfamily.com/2007/09/19/token-economy-vs-real-cash/#comment-598 Andrew Thu, 20 Sep 2007 14:47:20 +0000 http://www.financingyourfamily.com/2007/09/19/token-economy-vs-real-cash/#comment-598 The question is whether you want to teach your kids about loans in a positive or negative manner. I would be extremely happy if my children never had a single loan in their life. My wife and I are hoping to get our children to the point where they won't want a loan for anything other than a mortgage. It's unrealistic to expect them to pay cash for a house (I wish I could), but not unrealistic to expect them to pay cash for a car. Lots of people do that. My wife and I are planning on investing money now so when my oldest son is college-age, we have enough to pay for his college so he doesn't need loans. I think that's a better solution. The question is whether you want to teach your kids about loans in a positive or negative manner. I would be extremely happy if my children never had a single loan in their life.

My wife and I are hoping to get our children to the point where they won’t want a loan for anything other than a mortgage. It’s unrealistic to expect them to pay cash for a house (I wish I could), but not unrealistic to expect them to pay cash for a car. Lots of people do that. My wife and I are planning on investing money now so when my oldest son is college-age, we have enough to pay for his college so he doesn’t need loans.

I think that’s a better solution.

]]> By: mark http://www.financingyourfamily.com/2007/09/19/token-economy-vs-real-cash/#comment-597 mark Thu, 20 Sep 2007 14:40:53 +0000 http://www.financingyourfamily.com/2007/09/19/token-economy-vs-real-cash/#comment-597 Paidtwice- Piggy banks have great rates of return when Dad secretly empties his loose change into them :) David- A token economy teaches kids to be hoarders when you take into account the instant gratification drive that everyone has before they start maturing (That's why it's rare to see adults throw tantrums). By the time a child is old enough to really utilize a token economy, their reward could be cash to serve the same purpose. Loans might come into play when they reach middle school age and start wanting to go out places and buy things with their friends. The issue here is that I don't think I would be able to charge my children interest, and I know for a fact my wife wouldn't. So they'll probably learn about loans with student loans and auto loans like most people. Paidtwice- Piggy banks have great rates of return when Dad secretly empties his loose change into them :)

David- A token economy teaches kids to be hoarders when you take into account the instant gratification drive that everyone has before they start maturing (That’s why it’s rare to see adults throw tantrums). By the time a child is old enough to really utilize a token economy, their reward could be cash to serve the same purpose. Loans might come into play when they reach middle school age and start wanting to go out places and buy things with their friends. The issue here is that I don’t think I would be able to charge my children interest, and I know for a fact my wife wouldn’t. So they’ll probably learn about loans with student loans and auto loans like most people.

]]> By: David Robarts http://www.financingyourfamily.com/2007/09/19/token-economy-vs-real-cash/#comment-595 David Robarts Thu, 20 Sep 2007 07:23:52 +0000 http://www.financingyourfamily.com/2007/09/19/token-economy-vs-real-cash/#comment-595 I think that both a token economy and real cash have their place. I picture a token economy working within the home with children being "paid" to do chores, but also being expected to "buy" privileges (and perhaps have a recurring room & board bill). Even with the home economy operating on "tokens," kids could receive an allowance and be taught to put away part of it into a savings account (I remember going to the bank with my 10% savings as a kid). I don't understand why you think a token economy is more likely to teach kids to "hoard for a little while and then spend everything in one go." Please explain more about how you see a token economy operating. I'm also curious about how you might teach about loans to your kids. I think that both a token economy and real cash have their place. I picture a token economy working within the home with children being “paid” to do chores, but also being expected to “buy” privileges (and perhaps have a recurring room & board bill). Even with the home economy operating on “tokens,” kids could receive an allowance and be taught to put away part of it into a savings account (I remember going to the bank with my 10% savings as a kid).

I don’t understand why you think a token economy is more likely to teach kids to “hoard for a little while and then spend everything in one go.” Please explain more about how you see a token economy operating. I’m also curious about how you might teach about loans to your kids.

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