Tep":2j6hygtf said:I am wondering what to charge my 3 girls for their cows? I want them to learn that nothing is free (ok, grandpa gave each one a cow), that there are expeneses (grass rent, vacc, salt and mineral, ect.). But I also want them to make a profit, which goes to their savings acct. They are to young to understand the exact amount, but the oldest has started helping with fence and feeding. The 3 year old can help feed the calves. Has anyone ever done this before? Thanks for your advice.
First of all,,, :clap: . More parents need to take note. There are so many lessons that can be learned from some thing like this that we probably can't list them all. Don't let any one tell you different.
IF I were you I would sit down and run some numbers yourself and see what it comes out to with the basics.
Start with the stuff like vacs that are straight foward expences. (maybe a couple $/ head :???: )
Then go to say grass lease. (IF you have 100ac leased for $10/ac and have 25 head, 3 of them your girls, each girl would be responsible for $40.)
Then on feed. Every time you feed the 25 head 1 bad of cubes at $8... each girl is resposible for $0.32.
Keep going down the list and add it up. Probably leave out labor charges I would think. If their calf from that cow will bring $500 then you can subtract what you calculated for expences. Then play with the numbers until they profit what you think they should. ;-)
Break it all down for them, show them how to do a spreadsheet, keep reciets, pay other people, ect... Family time is priceless, but it doesn't pay the bills. A good understanding of business will get them a long way in life and there is no reason why you can't do both.
May even want to set them up with a little cash in envelopes and call it a loan. They are going to need capital for expences to get started if they don't already have any.
I am personally a big fan of Dave Ramsey and his financial advice. HE says that when you are trying to teach kids about money don't be so strict on the SAVE SAVE SAVE part. IF they get say $20 for their birthday that is a gift. Don't force them to save it. In your case on this deal where they will make money you want to teach them put some into savings, but you want to give them a little to enjoy so they see, touch, feel, play with some of the fruits of their labor. Like maybe they get to spend 1/3 and have to save 2/3. With out a little bit of immediated gradification most people will totally lose interest.
Check out his web site. THere is an area for kids, teens, ect..
http://www.daveramsey.com/etc/cms/kids_teens_money_5195.htmlc
I will do some thing very simular when my boy gets a little older. He is going to be 3 in December but already helps out. Yesterday he was dragging 10' pieces of pvc and laying them next to a ditch. They are never to young to learn about hard work and finances. At 8yrs old I worked for the first person who was not family. At 18 I had two people working for me.