After reading the section on Savings in Banks, I was more reflective of how we get to where we are as a society. Learning these traditional ways actually seem to be more likely to hurt us rather than help us. While I thought it was still too early to confuse my daughter with a lesson on money and banking, I did tell her that there are always better ways to do things if we are able to control our own decisions. She still looked at me confused but given some recently practical lessons she has had herself, I think she understood the concept.
When we started this school year, I setup an allowance system for her where she would get a daily allowance and additional monetary rewards for her daily chores. I was able to do this with a digital app which is integrated with a real life bank account the family owns with her own debit cards. She has two accounts: a spending and a savings. She earns her allowance and rewards on her spending but can transfer to savings to accrue interest which I make attractive for her. If she runs out of funds and want to buy something, she can request a loan from me but must also pay interest.
Fortunately for her, she had some savings in cash which she quickly deposited and has not spent much. She has not needed a loan yet as she has been pretty frugal (and because I continue to buy her things). However, she wanted a new phone this year so needed a couple of hundred dollars to get as I told her that the last phone still worked. I did make her a deal in that if grades were kept up and if she saved half the price and costs, I would put the other half. She worked pretty hard in accumulating and actually had enough to pay in completely! However, I held up my end of the deal. It was interesting to see her upgrade her storage from the base model since she could afford it!
Back to the homework and the inner chuckles it created as I read that putting money in banks was "safe." They also emphasized that we get a bonus called interest for keeping money there. Not sure how old the book is but it has been a while since bank savings accounts really had an attractive yield. One interest question I got from my daughter was why would we let the bank use our money to loan it others! She was already thinking ahead of the faults and risks of this banking system.
This all made me reflect of why adoption of decentralization and monetary sovereignty continues to be slow. While technology advances very quickly, human behavior stagnates because of the learning process. If teachers are not up to speed nor incentivized to adapt, how can we change perspectives of the changes in trend that will help the future generations make better decisions? I still admit I am not the best teacher or role model but I will try my best to teach from my mistakes; however, in an ever growing open and digital world, it will become tougher.
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I think @smallsteps is too young for this level.
However, it is a very interesting question with the why let them loan it to others. Did you tell her about rentseeking? :D
She was confused enough but it is on my list! We are going back to see family soon and she will go with me to visit our properties that I have rented so I will give it a try!