"Hey, your school has been mentioned in the newspaper," I shouted to my son. I showed him the paragraph where the principal mentioned that XYZ school uses motivational speeches and Homework Clubs to help children deal with exam stress.
My 10-yr old literally dived into the paper to read the article but when he emerged from the papers he wore a patently unimpressed expression.
"Well," he said shrugging his shoulders, " motivational speeches just means random babbling by the Principal on assorted topics. Homework Clubs? They are no fun .... they are menial!"
Thank you very much, young man, for sharing your views.
Monday, October 4, 2010
Friday, October 1, 2010
Credit Card
Bombarded with yet another long list of items that she wished to buy, I decided it was time to teach my 7 yr old daughter some basic lessons on personal finance. I was trying to explain to her that there is only finite supply of money we have access to, which means we need to save and therefore delay gratification. Made for an extremely interesting conversation:
Mom : If you had $5on Monday and you spent the $5 on Monday on menthos, markers, keychains, stickers and everything that you wanted, how many dollars do you have left?
D: Zero dollars.
Mom : What if you need to buy an exercise book on Tuesday? You have no money left.
D: You can give me the money.
Mom : But I can only give you $5 every week - and I have already given that to you. So I have no more money left.
D: Appa can give me. I saw he had many $5 notes in his wallet.
Mom : O! But all Appa's $5 will be gone when he buys petrol on Monday. Then he will have no $5 to give you.
D: (silence)
Mom : You will have no exercise book then. So do you think it was correct to spend $5 on Monday on things that you did not need?
D: But I like menthos and keychains.
Mom: But you will have no exercise book and teacher won't like that. But if you only spent $1 on Monday, how much you have left?
D: Four dollars
Mom: Yes - then you can buy your exercise book on tuesday, right?
D: It's ok Amma - if I have no dollars, the Bank can give me the money!!!!!
The concept of having to have money in bank first before you can withdraw from the bank was bewildering to her.
We headed to the supermarket after this conversation, to buy things for her birthday.
We piled our cart with things for loot bags, pizza, and her birthday gift. As we approached the cashier, she asked me "Amma, how much money do you have?" "$40, I think." She was silent, but her eyes ran over all the things in the cart, and she looked a little worried. As the cashier rang in the purchases, her eyes were peeled on the little rectangle that rose above the register to indicate the total cost. She got shifty once the numbers raced past $40 and let out a soft "Whoa" when the green numbers finally said "$140.40."
I could almost hear the silent prayer she uttered while I rummaged through my wallet in search of my credit card. Her eyes lit up when she saw that magical piece of plastic that could instantly wipe away the deficit of currency notes. There was a spring in her step as she helped me carry the purchases to the car.
On the way back, as is her habit, she recounted everything we did at the supermarket. She rounded up her re-cap with, "And Amma ,the cashier was so kind, because she let you use your credit card." I could already hear soft admiration in her voice as she uttered the words credit card.
I tried explaining to her that I still need to pay for the purchases. I explained that at the end of the month I instructed my Bank to pay the credit card company all the money spent over the month.
Her eyes widened, "See Amma, I told you - if you don't have the money - its ok - Just Ask The Bank to Pay!" (I am sure she added a 'Stupid' - at the end of the sentence in her head.) Exasperated at the circularity of the conversation, I tried again to clarify. "But I have to save money and put some money in the Bank, before I can ask the Bank to pay for my credit card. If I spend all my money, and have no money in the Bank - I will not be able to pay my credit card bill, sweetie!"
"It's simple," she exclaimed triumphantly. "Just put your credit card into the bank. When there is no money .... ta da Credit Card."
End of Lesson One.
Mom : If you had $5on Monday and you spent the $5 on Monday on menthos, markers, keychains, stickers and everything that you wanted, how many dollars do you have left?
D: Zero dollars.
Mom : What if you need to buy an exercise book on Tuesday? You have no money left.
D: You can give me the money.
Mom : But I can only give you $5 every week - and I have already given that to you. So I have no more money left.
D: Appa can give me. I saw he had many $5 notes in his wallet.
Mom : O! But all Appa's $5 will be gone when he buys petrol on Monday. Then he will have no $5 to give you.
D: (silence)
Mom : You will have no exercise book then. So do you think it was correct to spend $5 on Monday on things that you did not need?
D: But I like menthos and keychains.
Mom: But you will have no exercise book and teacher won't like that. But if you only spent $1 on Monday, how much you have left?
D: Four dollars
Mom: Yes - then you can buy your exercise book on tuesday, right?
D: It's ok Amma - if I have no dollars, the Bank can give me the money!!!!!
The concept of having to have money in bank first before you can withdraw from the bank was bewildering to her.
We headed to the supermarket after this conversation, to buy things for her birthday.
We piled our cart with things for loot bags, pizza, and her birthday gift. As we approached the cashier, she asked me "Amma, how much money do you have?" "$40, I think." She was silent, but her eyes ran over all the things in the cart, and she looked a little worried. As the cashier rang in the purchases, her eyes were peeled on the little rectangle that rose above the register to indicate the total cost. She got shifty once the numbers raced past $40 and let out a soft "Whoa" when the green numbers finally said "$140.40."
I could almost hear the silent prayer she uttered while I rummaged through my wallet in search of my credit card. Her eyes lit up when she saw that magical piece of plastic that could instantly wipe away the deficit of currency notes. There was a spring in her step as she helped me carry the purchases to the car.
On the way back, as is her habit, she recounted everything we did at the supermarket. She rounded up her re-cap with, "And Amma ,the cashier was so kind, because she let you use your credit card." I could already hear soft admiration in her voice as she uttered the words credit card.
I tried explaining to her that I still need to pay for the purchases. I explained that at the end of the month I instructed my Bank to pay the credit card company all the money spent over the month.
Her eyes widened, "See Amma, I told you - if you don't have the money - its ok - Just Ask The Bank to Pay!" (I am sure she added a 'Stupid' - at the end of the sentence in her head.) Exasperated at the circularity of the conversation, I tried again to clarify. "But I have to save money and put some money in the Bank, before I can ask the Bank to pay for my credit card. If I spend all my money, and have no money in the Bank - I will not be able to pay my credit card bill, sweetie!"
"It's simple," she exclaimed triumphantly. "Just put your credit card into the bank. When there is no money .... ta da Credit Card."
End of Lesson One.
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