August 27, 2009

This summer I paid five cents for every Japanese Beetle the children killed.  I paid ten cents for any beetles plucked and killed off my rose bushes.   This was a very affective pesticide.  The rose bushes are doing well.  The children learned about making money.  Beetle season is over and the bill came due.

All totaled, I can't remember the totals.  I think Ry made twenty one dollars, Henry sixteen.   Something like that.  I don't know how many beetles were killed.  I did not check any one's computations.  I asked for a written bill and paid upon receipt.  The kids worked out the math by themselves. 

Riley wants to be a millionaire.  So yesterday we discussed compound interest.  We went down to the bank and she deposited one hundred dollars.  She has worked hard for that money.  She has saved a long time.  We listened to the different accounts available.  We considered a five year certificate of deposit because three percent annual interest, compounded daily, looked pretty good.  But Ry didn't have quite enough for a deposit.  So she opened a savings account at two percent.  She got a  bank card with her picture on it.  Which she will swipe at the teller's station when she needs to access her account.  (I don't even have one of those.)

We sat waiting to speak with a banker.  Ry hugged her money and said it was hard to let go.  Then she asked why banks look so fancy.  I told her that most people have a hard time letting go of their money and banks are fancy so that we feel safer when we hand over our cash.  Then we sat in silence waiting to do some solid business in the real world.   Compound interest is, I think, the most important math for a child to understand. 


Sarah said...

Fantastic post. Life lived with an involved, helpful parent is the best education a curious child could receive.

I love the idea of paying the kids to kill the beetles. We had an infestation of Colorado Potato Beetles (and just now we're getting crickets) this year. I think I'll use your method next year.

Anonymous said...

Oh you tell it sister. Compound interest, dividends, whatever it takes to acquaint her with the world. Open a Schwab account and buy a few shares of stock. Watch what happens. love, V

Annie said...

Love this!

Sara said...

I love this. I should put a bounty on weeds, and let my kids earn a bit for each dandelion they pull!

SabrinaT said...

Next year ship those beetles over here.. Kids keep them as pets and they sell for quite a bit. (for a bug)..