Sunday, July 25, 2010

Hannah's First Loan

Each week Hannah gets an allowance if she completes her chores. Up to this point we have taught her how to distribute that money. She puts 20% in savings, gives 10% for tithe, 5% for missions, and the balance she can spend how she chooses.

I felt it was now time to teach her about financial loans. I don't want her to learn it by having a car repossessed. So when she had asked for some items for her hamster the other day I told her that I would give her a financial loan with interest that she would need to repay within a set time. She agreed.

Hannah has been house sitting some of the neighbors animals this summer and making good money for a nine year old.

Within two weeks of giving her the loan she had enough money to pay me back. She approached me and said she had the money, but also wanted to get something else. This gave us the opportunity to talk about the importance of repaying debts. We also talked about how we should not give into the worlds idea that we need to fill our every "ME" desire. After our discussion I gave her the opportunity to choose what she wanted to do with her money. I am happy that she chose to pay her debts.

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