Find a penny, pick it up

Yesterday, while out and about, my son (“The Finder”) found 12¢ – two pennies and a dime.

“Why are you ALWAYS picking up coins?” asked my wife and I, simultaneously.

For Pete’s sake (note that none of our sons’ names are Pete), every time we are out, he finds coins – on the floor, on the bench, in the vending machine… EVERY time!!

Our other son (“The Saver”), he keeps his money in the bank. He walks with strength and security in knowing his money is safe and sound, earning interest. On his last bank statement, he earned 6¢ of interest for the past quarter. For 2012, he will earn 24¢ of interest – 2¢ per month. This amounts to 0.024% interest on a $1,000 balance. Note: Bank of America regular savings account has an interest rate of 0.01% (https://www.bankofamerica.com/products/deposits/savings-accounts/regular-savings-account.go)

“The Finder” has no trouble collecting 10¢ per DAY, without effort – a serious lack of effort. If he tried, he could collect 15¢ per hour. In 90 days, he could easily have $9.00. In one year, he would have $36.00. If we consider his finds to be earned interest, it would calculate to an interest rate of 3.6% – more than 100X the current interest rate of “The Saver.”

Our advice: Let your children wander and roam, find coins and teach them about the economy.

Additional advice: Explore new places with your kids. Once they harvest their interest, find somewhere new. Ride the bar.

piggyback rider standing child carrier