Unschooling Lessons: III

Compound Interest vs Credit

While a seven year old may not grasp the value of a dollar, or the waste of 25 cent machines, he can comprehend credit and compound interest.  He can be taught the value of saving for something he wants, or learn the trials of impulse spending.

Benjamin desperately wants a go-cart, and a motorcycle, and a fly tying kit, and a…. I could go on for quite a while with his large purchase want list, but he also wants bubble gum, and tattoo’s, and stickers; and he want it all now!

Because of all the desire in this house, I set up a system by which the boys could earn money. I also set up a bank, where they could earn interest. This was to teach them the value of a dollar, and that it takes work to earn money; but, more than that, it has taught them to think ahead.  Benjamin has spent enough for a fly tying kit, twice over, on bubble gum.  He is generous, and wants to treat all, but then he is left with nothing.  These have been hard lessons for him, but he is getting it.  I am confident that he will know how to handle money by the time he is old enough to leave home.


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August 2008
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"Delight thyself also in the Lord; and he shall give thee the desires of thine heart. Commit thy way unto the Lord; trust also in him, and he shall bring it to pass." ~Psalm 37:4 & 5

Confident Endeavors

"If one advances confidently in the direction of his dreams, and endeavors to live the life he has imagined, he will meet with a success unexpected in common hours."

- H.D. Thoreau


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