## Kids Spending Money

Today’s post comes to you from my son, J! He’s here to talk to you parents about kids who spend all their money.

Does your kid like to spend his or her money once they get it? If so, here is a tip for you.

## Teach Your 8-Year-Old to Calculate the Tip

Calculating the tip is a great way to practice percentages. These days, I don’t think many people do much math with a pencil and paper. We rely on technology for almost everything — even things as simple as calculating the tip at a restaurant are now done with a tablet on the table or an app on your phone.

I think it’s important, however, to put the technology aside for a bit and work through a problem by yourself. That’s what we’ve been doing here for awhile — by keeping account registers, learning how to calculate percentages, practicing those calculations, and even tracking our spending on vacation. All with pencil and paper. Old school.

My favorite lessons are those that he can practice himself (hands-on!), that make sense in the real-world (are meaningful, relatable and useful), appropriate for his age and are interesting and even fun. (I realize I may be stretching the definition of fun.)

In that vein, I taught J how to calculate a 20% tip at a restaurant.

## Practice Makes Perfect

Last month we started talking about percentages in the 10-10-80 savings plan with our focus on the 10% that goes to savings. I want J to save at least 10% of all money he receives, so we’re working on how to calculate 10% of any amount.

I showed him two ways to calculate 10% last time:

• Use the 100-grid and divide the amount into 10 equal parts. \$3.00 divided into 10 equal parts gives you 30 cents in each 10-block
• Move the decimal one place to the left to find 10%. \$3.00 becomes \$.300 or 30 cents

J got a calculator for Christmas, so we integrated it into our practice. I showed him how to find the decimal equivalent of a percentage by moving the decimal point two places to the left (10% becomes .10). Continue Reading

## 10-10-80 Savings Plan

Have you ever heard the following sage financial advice?

Pay yourself first