We had a lovely Christmas. On Christmas Eve, extended family came over. We had agreed that the adults would forgo buying each other gifts this year. Extensive gift exchanges can be time consuming and money consuming. And really, I don’t think my sister-in-law is missing out on the embroidered reindeer sweater she would probably receive.
Christmas was low-key and not excessive. Our focus was spending time with each other, breaking bread, and being thankful for family and what the holiday represents. Rembot and Baby Shark opened up their kitchen set, and spent most of the day making soup and cupcakes and marshmallows for the rest of us. There was no chaos or huge piles of boxes or small children being overwhelmed by toys everywhere. We had a wonderful time.
I was recently approached to partner with a company called Kidworth for a short-term project. Their whole premise is right in line with what I want for my children – for them to give generously and spend wisely.
Kidworth is a free service for parents to help teach children money management that will last a lifetime. Our service allows parents to set up accounts for their children, create goals each child is working towards, and invite family and friends to help via emails, social sharing, and invites….
Did you know kids get an average of $25,000 in gifts and cash from 0-18? Yet most children have a net worth of zero when they leave home. Kidworth is designed to help kids of all ages learn financial goal setting so they leave the nest with a nest egg in place.
That last statistic sort of blows my mind. 25k? Yes, my kids are young (all currently 3 and under), but I would love to start putting steps in place to make sure that money isn’t being spent frivolously.
I signed up with Kidworth, and the first thing I noticed is that Kidworth encourages you to make share, spend, and save goals for each child. It encourages children to give philanthropically, spend on something they’d really like, and save for important goals.
I made one up for Rembot, just to see how it all works.
The goals are a little fictitious at the moment, although Rembot is sweating a bicycle pretty hard right now. Rembot’s preschool collected gifts to donate locally to less fortunate children. Her teacher did a great job of explaining why we give to others, and it’s really opened the door for conversation about donating and giving.
There’s also an option to send an e-card to interested parties who want to give money towards these financial goals. Because I love Emily Post and all of her rules on etiquette, I’d never send this to family or friends unsolicited. BUT, every Christmas, my dad (who lives a few states away) calls me and asks what the girls want. It’s a dance.
“So, what do the girls need for Christmas?”
“Ehhh, nothing, really.”
“Make a wishlist on Amazon and send it to me.”
“I think they want a KitchenAid stand mixer and a gift card to a spa.”
“…..”
“Okay, I’ll email it to you.”
Bless my dad for fully realizing that he has no idea what the 3 year old crowd wants for Christmas and asking for guidance.
So I make a wishlist on Amazon. Wooden puzzles, some preschool activity kits, projects that can be saved for a rainy day. Truth be told, I don’t even give them to the girls on Christmas. I hoard them like woodland creatures hoard acorns and bring them out when I deem it necessary.
Of course, at one point, Rembot will no longer be 3, and perhaps $15 puzzles will no longer delight her. At some point, she may ask for an iPod or a phone or a violin or a mother-daughter trip to Cancun. (What?)
So, she can save up for those things, and when Christmas comes around and her Pop wants to know what she wants, she can log-in to her Kidworth account and send him an e-card listing her financial goals. Pop can give directly to one of her savings goals.
Pretty great, right? For fun, I asked Jack what were some big-ticket items he saved up for while he was growing up. (I’m pretty sure that when I was growing up, anytime I had cash, I spent it on books or ripped jeans or CDs.)
“When I was 12, I saved up $200 for a used saxophone. By the time I was 16, I had saved up $3,000 for my first car. 18, saved up $500 for my first guitar.”
Oh. Overachiever. Fine. :)
Disclosure: This post was sponsored by Kidworth, a free service for parents to help teach children money management that will last a lifetime. And? The person to write the tenth comment on this post gets $10 towards their child’s financial goal, Cancun or not. :)
Can I comment ten times so I am the tenth so that I win?
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I think I might just to ruin everyone’s night/morning…..
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What a great idea!!!!
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that seems pretty cool, wondering on the ease of deposit/withdrawel??
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Kelly Reply:
December 28th, 2011 at 11:55 am
Deposits are made via gift card purchases only at this point, though you can also keep track of money saved in other accounts simply by adding a ‘kid contribution’ on any goal.
Withdrawal is as simple-you request the funds, we send you a check. We’re working on other options like Kidworth-bank transfers and gift cards in 2012.
-Kelly from Kidworth
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Can I start one for *ahem* future children? We won’t be even TRYING for at least 2 years.
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Wish I had this when I was 3 :-)
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I think this is a great idea!
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I am totally going to try Kidworth out on my almost 5 yr old. He is totally into money and saving. He does like to spend, but he would rather spend my money and save his own. He is also pretty familier with the less fortunate, so I think he will totalky understand the share section. I can’t wait to check it out tomorrow!
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Kelly Reply:
December 28th, 2011 at 11:56 am
Juliana, please let us know if you have any questions. Since we’re still new we love user feedback-we want to make this the best experience for parents and kids.
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I’ll have to check it out in a few years…I wish I had this when I was younger!
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I’m still awake cleaning spring cleaning in the winter so I figured let me give this another try!
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Thank you SO MUCH for sharing this. This is exactly the kind of thing I have been looking for! :)
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Loooove this. Can it be contributed to by people outside the US?
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Kelly Reply:
December 28th, 2011 at 11:57 am
Yes! We have no borders-since we’re an online company.
-Kelly from Kidworth
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Love this….sounds like u had a great Christmas! :)
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LOVE this idea! Thanks for sharing! Totally setting this up for Lei! As a kid, I can’t remember saving for anything and our Christmas toys were played with for about a week before they started collecting dust (shhh….some are still in boxes in my parents basement…dang barbie collector…and I’m gifting them to my afropuff princess for good behavior and stuff!).
I think it’s a great idea to start kids so young b/c they don’t teach this in school and many adults (not Jack of course because he seems to be a different species of some sort….Love ya Jack!) don’t know how to save.
I must admit I suck at saving but when I worked at the bank I taught so many people how to save $-when shopping, how much to put in a savings account each paycheck, when to put it into a CD, etc. but I can’t ever follow my own advice.
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I know that you have exceeded past the 10 person giveaway. But this is an awesome idea and I am totally signing up. My husband and I are avid savers (shocker I know with my excessive shopping habits). And have been for my kids. In fact my 8 year old has never spent a dime of any money she has received for birthdays, holidays or the tooth fairy. And every year when people ask for present ideas I say buy them a savings bond. I don’t care if it is $10. Because in 15 years when my three year old is ready for college that $10 can have matured to enough to pay a lab fee or buy a book. I think this idea is fabulous. No longer do I need to ask for a bond but I can simply hook it up to their existing savings and just email people. I love it!
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Kelly Reply:
December 28th, 2011 at 11:59 am
Kristin, that’s awesome! Glad you left a comment. :) We do not currently have bank to bank transfers set up but you can add a ‘kid contribution’ at any time.
You may consider using our invites for future birthday parties, holidays, etc. so all family and friends have to do is click a link and support her goals.
-Kelly from Kidworth
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Kristin Brodzinski Reply:
December 29th, 2011 at 11:10 pm
So does the saving accrue interest like a traditional savings account? With a bond or a certificate you typically get such a better interest rate on them. (that is my opinion only, though)
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Kelly Reply:
December 30th, 2011 at 10:20 pm
It’s not like a traditional savings account, so there is no interest earned. You can either choose to account for money that is saved elsewhere, or move funds whenever you choose.
Paulina J! Reply:
December 29th, 2011 at 11:03 pm
Kristin, I learned something new today that savings bonds are going paperless in 2012 and that you will be able to purchase them electronically and even convert your paper ones to digital ones. Here is the Treasury website: http://www.treasurydirect.gov.
Thought it was interesting and worth sharing.
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Kristin Brodzinski Reply:
December 29th, 2011 at 11:07 pm
Thanks, Paulina, for the link. Something I will be implementing for sure.
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Overachiever indeed!! I used to save my money growing up and this is an awesome idea. Wish I had a little one right now so I can start this. Although, I might pretty soon :) We’re finally trying and I’m excited/nervous/anxious…
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Where has this idea been for the last 12 years?! ;) Love it!
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