A TikTok mom has sparked considerable debate about whether it’s appropriate to teach a child as young as seven about money by paying him a small allowance and then having him pay “rent” and “bills” at the end of the month, keeping the rest for himself to buy what he wants. The mom, who goes by “CraftedAndCozy” on TikTok, says this has “worked wonders” with her child in teaching him about handling money — something that unfortunately is not taught in many schools and that young adults often struggle with.
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The video has racked up over 2.7 million views since she posted it in June, but it has only recently came to the attention of the larger internet world. Though the idea of charging a seven-year-old rent may sound shocking at first, the explanation of the process does sound a bit more reasonable. For example, she’s not charging him the same amount that most of us pay in rent.
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“He has a daily task list that he must complete on a daily basis,” she says. “Should he complete everything on his task list, he gets a dollar per day.”
“At the end of the month, he realizes that he has a bill to pay. He pays those bills to me. He has his rent, his electricity for his room, and he also has his Internet for his iPad.”
The kid’s monthly rent is only $5 and his bills another $2 each, adding up to $9 total. If he completes his tasks every day of the month, he earns around $30.
“So bills are only $30 of his minimum income,” says mom.
The TikTok user helps her son keep track of his money with two buckets where he can put “his ‘fun’ money and his ‘bills’ money.” So far, he’s never failed to pay what he owes, but mom says she would probably give him an extension if that ever happened. Meanwhile, the $9 is put into his savings account, which she says in a follow-up video that she will turn over to him in the future.
This teaching technique has been reported as incredibly successful and even helps mom correct small issues by adding new items to his task list.
“It has taught him the value of a dollar and responsibility,” she says. “I’m so pleased with the results.”
“If I see that he’s being challenged in any area, for instance if he gets out of the shower, drops his towel right next to the towel hook, it’s going on his task list next week.”
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Typical daily tasks include brushing teeth, making the bed, and picking up toys. The TikTok mom warns that this method might not work well for all kids even though it’s worked so well for her household.
These videos have sparked considerable debate among parents and various commenters, with some loving the idea and others feeling that seven is too young to be teaching a child about the fact that our entire lives are controlled by money forever, saying that kids should just be kids while they have the chance to enjoy it.
“This may seem extreme to some but financial literacy is not taught in school so where is it going to be taught? At home!” argued one TikTok commenter. “This is a good way to start!”
“I’m okay I’m going to let my kids be kids and teach them that when they get older,” said another. “Those are valuable times to enjoy not be thinking about ‘bills.’”
*First Published: October 7, 2021, 8:55 am
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