Copyright 2004 Blethen Maine Newspapers Inc. Portland Press Hearld,  
Leslie E. Linfield

Few of us think about our personal finances during the warm summer months. We're
either planning vacations or sending our little ones off to camp.

When my son recently went to his first overnight camp, unlike most other mothers I decided that this presented a unique opportunity for some in-depth "scientific" research into the spending habits of a 7-year-old.

Like most summer camps, this one had a canteen, and the
brochure stated that prices are kept to a minimum, so $3 to $5
per day was more than adequate.

I sat with my son and explained that I was going to give him $20
to spend. I told him that he was free to spend it however he
wanted to, but whatever money he saved and brought home
would be his to keep.

There was one catch; he had to keep a spending log. Every penny
spent and every item purchased had to be recorded. He decided
before leaving to set a goal of coming home with five dollars, and
wrote that in his log.

The parameters were set, the controls in place, the experiment
running. How would he choose to spend his money?

We packed the spending log in with the bug spray and sun block
so he wouldn't forget about it. I have to admit that I wondered ifthat was the last time the log would see the light of day.

Would my experiment fail? Could a 7-year-old track his spending
decisions, meet his financial goals, and manage his money when
many adults can't? For that matter, would he even remember to
call home?

Fast-forward five days. With nary a phone call from the child, I'm
a wreck, I'll admit. The spending log, what he bought and the
experiment are not, shall we say, my primary concerns.

As he climbed off the bus, sunburned and bug-bitten, I figured the
spending log was as forgotten as the sun block and bug spray.
Imagine my surprise when his first words were, "I have my log
and I think I have more than $5 left, Mom!"

We went to lunch and I learned all about his week and the
wonderful experiences that come from being a young camper in
Maine, and after lunch we reviewed his spending log. The results
were in: He spent a total of $11.75.

Of that, $8 was spent on a water bottle with free soda refills each
day, and the rest on candy. The difference, $8.25, he was going to
save. He had remembered to record his purchases, and the
numbers added up. I was delighted. I then asked him some
questions about his decisions and his thoughts about the process
of managing his money.

When I asked how he felt about meeting his goal, he said that "I
feel like I'm a grown-up. I feel like I'm ready for my own account.
I think grown-ups can learn from this."
He thought the candy was reasonably priced since "nothing was
for a dollar, just cents." His smartest purchase of the week was his
water bottle, which he chose "because I got a free soda refill every
day the canteen was open. I chose the red one."

We often underestimate what our kids can learn about managing
money at a young age. A 7-year-old on a fixed budget was able to
set a financial goal, make intelligent purchasing decisions, and
track his expenses. Those are the basic skills of personal finance,
and they can be learned much earlier than we think, if only we
teach them.

What will he do with the leftover money? "I'm planning on saving
it. When I get $100 in my account I'll find a house and I'll buy it."
I didn't have the heart to tell him that he would be a bit short in
the Portland market, but I'm proud he's thinking that way.
Now if I can just get his 5-yearold sister to manage the back to
school shopping thing.