Monday, April 10, 2006

Learning the Principles of Prosperity at 4 and 2

Rick has said, “Money is the conceptual realization of value”. I chewed on that for days and after finally having that “ah HA” moment (catalyzed of course by a conversation with Rick) I came up with the following flow chart. (You can click on it to see it better)





This is the third version that has been posted online and The Free Capitalist hasn’t given any feedback on it yet, so please accept it with a grain of salt. For me, however, it’s been very helpful.

Our family has had quite an adventure with using different forms of money and I thought all the parents out there might appreciate the story.

Ethan has already earned more than $20 from recycling with our family the last two weeks and from a church member who got wind (through proud Grandma, People are Assets) of what he was doing on our block and wanted to participate so she left big bags of recyclables on the porch. On Saturday I helped him divide up his money into tithing/saving/spending and then took a trip to the toy store for the parachute he’s been talking about for the last few days.

He saw lots of other things that he liked and wanted but he discovered that many things we’re out of his price range. We couldn’t find a parachute, but he found a shiny plastic sword ($6) that he liked a lot and that he could afford. He was so happy that he wanted to get something his brother would like too. He picked out a little red matchbox convertible ($1). I asked him, “Is this a present for your brother, or are you just going to share it with him?” Share. He made the transaction himself by handing the cashier his dollars (I helped him count it out, of course). On the way out of the store he used the rest of his spending money (50 cents) for a ride with his brother on a stationary car that bounces up and down. (Value=Money->Currency->Fiat->Dollars)

When we got home I gave Hunter (2 yrs old) a treat. Ethan took it away, and I promptly restored it to Hunter. I suggested that if Ethan wanted the treat, why not give Hunter something that he wanted. Ethan traded his new car for the treat and then consumed it all. Hunter was upset after the fact when he saw Ethan enjoying the treat, but he didn’t want to give up the car to get the treat back before it was gone. After the treat was gone and his car had been traded away, Ethan decided he wanted the car back. I told him he couldn’t just take it. So Ethan took his very valuable (to him) sword and traded it for the car. Hunter was eager to make the exchange. (Value=Money->Currency->Barter)

Once Ethan had the car again he realized that the sword was much more valuable to him. Ethan offered the car back for the sword and Hunter refused. Ethan offered his superheroes (whoa!), his favorite motorcycle shirt, but much to his dismay he couldn’t offer his brother anything that he wanted more than the new sword. (Value=Sentimental Value) At the moment of his ultimate frustration I suggested, “Why not offer him a ride on your bike?”
“Hunter, do you want my bike?”
“No, no, honey. Not your bike. A RIDE on your bike.”
“Hunter, do you want to go for a ride on my bike?” (Perspective Determines Action)

Hunter was very excited to go for a ride on his big brother’s bicycle so he immediately gave the sword to Ethan (Value=Money->Promise->Future Usury). Ethan was SO elated that he hugged his brother, told me he loved me and then (most surprising of all) told his brother he could play with his sword when we got home. Wow!

Hunter kept on trying to peddle backwards so the ride on the bike went only about 10 feet before Hunter decided he was done. We took the bike home and went to the park anyway. While we were there Hunter jumped in as many puddles as he could and the deeper the better. (Agency implies stewardship) Ethan ran around vanquishing abandoned sandcastles and heroically battled all the bugs in the grass with his new sword. There was another family there with us whose children gazed LONGINGLY at Hunter jumping in the puddles. Who do you think had more fun? Who got to experience the consequences of their OWN choices? Was Hunter wet? Yes. Did he seem to mind? No, not really.

When we got home I took Hunter upstairs to change his clothes. When I came back down Ethan was nowhere to be found but my bedroom door was suddenly shut and locked. When I went inside Ethan was under my bed.

I told him to come out.

He did.

....You know that look of guilt on a child’s face?

“OK, stick out your tongue.” Chocolate.

Is there any more under there?”
“No”
“Can I look?”
“No”
“I’m going to look”
“I don’t like you”

I sent him under the bed to retrieve the rest of the chocolate and while he was under there he took another little bite hoping I wouldn’t notice.

After lunch we broke out the scriptures and went over the Ten Commandments in Exodus. I explained how he broke 3 of the ten. Thou shalt not covet. Thou shalt not steal. Thou shalt not bear false witness. According to the law he had to repay 5 times what the chocolate bar was worth. If he had been able to return it unopened he would only have to repay 2 times what it was worth.

Just to be clear. If he had taken the chocolate bar and sat at the kitchen table and said, “Hi mom” when I came downstairs, he would have only been spoiling his lunch. However, because he took it into my bedroom locked the door and hid under the bed I knew that in his own mind he was violating a principle and felt guilty about it.

I had his sword, car and bag of savings money on the table. I explained how the chocolate bar was worth $1. He paid $6 for his new sword, but now it was used so it was probably only worth $5. I told him that the sword now belonged to me as restitution for stealing the chocolate bar. When he started to cry I explained that these were the natural consequences of stealing the chocolate. At that he seemed comforted in the ruling but still upset at himself.

It’s two days later and Ethan wants the sword back. So, today he has been doing loads of laundry for me. I’ve been supervising as he’s gone through the sorting, hauling baskets to the laundry room, putting the clothes into the washer and then into the dryer, pushed all the buttons, put in all the soap and even cleaned the lint trap. At the very beginning when he was sorting he started complaining about how it was too hard and he didn’t want to do it.

“OK, you don’t have to do it”
“Can I have my sword?”
“The sword belongs to me”
Look of frustration
“If you want to do the laundry for me I’ll give it to you”
“I want to do the laundry”

After the fourth load he was really getting the hang of it, telling me he knew what to do and he didn’t need me to tell him what to do next anymore. After each load he would ask if he could have the sword and would tell him, “You can have my sword when you’ve finished doing the laundry.” (Value=Money->Dynamic->Creation). After he finished all the laundry he was so pleased with himself for having done it and also happy to have bought the sword back using his own abilities.

Within the last few days Ethan has bought and sold the same sword using four different kinds of money.
1. Bought with Dollars (store)
2. Sold with Barter (car)
3. Bought with Future Usury (ride on bike)
4. Forfeit in restitution for item stolen (chocolate bar)
5. Bought with Creation (doing the laundry)

The terms I am using here and in the flow chart are ones I have come up with myself. I'm sure there are better words to express some of it and I'm open to suggestions.

I think application of the principles is so much more effective in teaching children rather than trying to explain them using only words.

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