Money in The Bank...
Hadit not been for the Lake Michigan Credit Union (LMCU) banking program, Khayriyyah and Khyasirah may have never gotten an allowance (subject for future post). I’m not sure how Wil and I might have thought about paying our children to do anything. I’m sure the issue would have come up at some point, but the LMCU bank program brought the money issue up when the girls were in kindergarten and 2nd grade.
When we received the paperwork about the program, we immediately signed the girls up for savings accounts. Participating in the banking program meant the girls needed money. We weren’t going to just give them “free” money – that would send a crippling message because we wanted them to learn how to working for AND saving money, right?
NOTE: Never, ever, give your children “free, no strings-attached, unearned money” if you want to leave, become self-sufficient, and potentially be a source you can borrow from at reasonable rates. Check out this resource: Get Kids to Save
Okay, so, the LMCU bank program led us into the realm of allowance earlier than we expected, which was just fine. While I don’t remember what they earned, I’m confident it matched their 5 and 7-year-old skills.
When we received the paperwork about the program, we immediately signed the girls up for savings accounts. Participating in the banking program meant the girls needed money. We weren’t going to just give them “free” money – that would send a crippling message because we wanted them to learn how to working for AND saving money, right?
NOTE: Never, ever, give your children “free, no strings-attached, unearned money” if you want to leave, become self-sufficient, and potentially be a source you can borrow from at reasonable rates. Check out this resource: Get Kids to Save
Okay, so, the LMCU bank program led us into the realm of allowance earlier than we expected, which was just fine. While I don’t remember what they earned, I’m confident it matched their 5 and 7-year-old skills.
About the LMCU program:
- This was a freaking 360-degree wonderful everyone wins idea!
- Their bank was housed at Endeavor Elementary school. All the banking jobs were held by 5th graders, who were trained to run their school’s LMCU “branch”.
- I believe, the bank opened once a month during the school day.
- Students were given time to go the bank, where they could open accounts and make deposits – I think they could only deposit (this is good).
10% Rule: Save TEN percent ALL money that crosses your palm – this includes
- Allowance (we matched)
- Birthdays
- Graduation money (high school and on
- Paycheck (when they got their first job)
Where Is All That Money Now?
Well, I wish I could end this post by writing that our girls still have all their saved money, but I can’t because they spent it. They didn’t spend it all at once - but over time with thoughtful reflection. Sure, I wish we would have done more with their savings like invest some of it (investment: subject for future post).
However, the point of the LMCU banking program was to build a sense of thoughtful habits about money. I'm happy to say both girls have developed a good level of conscious thought about money.
Unfortunately, the LMCU banking project ended a long time ago. When the branch at school ended, the girls took their checks (yes, we only gave them checks) to the real branch. You are missing a special sight if you never see you child walk up to a teller and hand over their check for a deposit.
No, you don’t NEED the bank “branch” at your child’s school – but the educational benefits are hard articulate.
With or without a program like the one Lake Michigan Credit support, Wil and I suggest you start a saving account for your children and pay them with checks (yes, they are going out of style but while they’re still available, order and use them for this purpose).
However, the point of the LMCU banking program was to build a sense of thoughtful habits about money. I'm happy to say both girls have developed a good level of conscious thought about money.
Unfortunately, the LMCU banking project ended a long time ago. When the branch at school ended, the girls took their checks (yes, we only gave them checks) to the real branch. You are missing a special sight if you never see you child walk up to a teller and hand over their check for a deposit.
No, you don’t NEED the bank “branch” at your child’s school – but the educational benefits are hard articulate.
With or without a program like the one Lake Michigan Credit support, Wil and I suggest you start a saving account for your children and pay them with checks (yes, they are going out of style but while they’re still available, order and use them for this purpose).
