Learn all about gettin' rich (thanks to my kindergartner)

I realized I had done something right when my 5 year old daughter insisted that I owed her interest. I had borrowed $10 from her piggy bank to take her to a demolition derby that only accepted cash and was worried I didn’t have quite enough in my wallet. The next day, I gave her the $10 bill back and she told me that I owed her more money. I told her that I had only taken $10 out of her piggy bank and that the bill I was giving her back was $10 to replace it. She proceeded to explain to me that when you borrow money from someone, you have to pay them more money than you borrowed back. BINGO, she had caught onto the concept of interest from something I had been rambling about.

I decided that it was time to double down on my financial education efforts. After some research on the best personal finance app for kids, I downloaded the Rooster Money app on my phone. I initially considered bringing her into the bank and setting up her first account, but later decided that was old school and that by the time she was an adult, physical banks would be obsolete. She has quickly grown accustomed to looking at her money on her phone, just like her old man.

She has been earning $5 per week. I slowly try to add to the list of responsibilities that she has each week for that same $5 pay (a little trick I learned from working in corporate america, heyo!) and she has been responding well. Her main chores include keeping her room clean, making her bed, picking up toys, and helping with simple tasks around the house. Recently, I explained to her that it costs our family money and wastes electricity when she leaves her light and fan on when she leaves to school. Ever since, she goes out of her way each morning to make sure everything is turned off.

She has already put her growing networth to good use! She recently bought the Barista Barbie that she has been saving up for and even decided to generously donate $5 to Feed My Starving Children (enough to purchase 20 meals)!

We use the Rooster app to manage her allowance and keep track of her money. It isn’t a real bank account, but more of a virtual envelop system. When I purchase something on her behalf, I simply deduct it from her account using the app. The app has a great user interface and Lila thinks it's pretty sweet, because it looks just like dad's Mint app that he is always checking.

Every Sunday at bed time, she reminds me it’s time to pay up. As of payday tonight, she has $68 stashed away. I have a feeling she is going to have several zeros at the end of her bank account balance in the future. I’ll continue to share this journey on raising financially literate and savvy kids. What does your family do and how have you helped to teach your children about the basics of money?