Cash or Credit?

Josh, our 10 year old, has been working at Nemo's with Tracy this summer. He has always helped out on Saturdays by working the cash register. He also has made himself drinks at the espresso bar (decaf). Over the last couple of weeks, though, he has gotten really excited about learning to run the bar, making drinks for customers. He is doing a really great job. We have several regulars who specifically ask to have Josh make their drinks. Tracy has been paying him about $10 a day when he works with her for a couple of hours... Things have 'clicked' in Josh's mind as far as hard work equals a $$ reward!
We do have quite a few Health Department employees come in the shop, as the Health Dept building is just a block away. One of them told Tracy that Josh could not work behind the counter. Tracy explained that he is our son, and we don't have a problem with it, provided he stays focused and does a good job. They said children could not work in this capacity, so Tracy asked what county regulation prohibits it. She said if it is in writing as a policy, then we would abide by it. The Health Dept called a little while later and said it turns out there are no written regulations prohibiting it. They asked us to utilize the Health Dept policy manual to train Josh, and to especially teach him safe food handling regulations, which we will do...

I took Josh to a sporting goods store today to get him some cleats for baseball, and to get him and Jonah some baseball uniform pants. Josh saw some Heelies (shoes with wheels, which I despise!) and wanted to get them. I told him that if he wants them, he would have to save his money and get them later. He pleaded with me to loan him the money so that he could get them right away. When I told him no, he got really frustrated with me. I explained to him that he needs to get in the habit of saving for things he wants, instead of buying them on credit. It is not good to owe money for things you want... He didn't take much interest in my reasoning. I told him that he may be frustrated about not getting the Heelies today, but that he would be thankful later (as an adult) if I help him to develop good financial habits now. He said he would rather just 'Thank me' today for getting the Heelies, instead of thanking me later as an adult! Well, I stuck to my guns and told him to save his money and buy them when he has cash. We are not going to do advances on allowance, or on payments for working at Nemo's. He finally accepted the fact that I was not going to change my mind. I know he does not see the value in this lesson now, but I fully intend to teach all three of our kids good financial habits now so that they have the foundation to be financially responsible as adults. It took me a lot of decades to see the value of it... I wish I had been more responsible starting in my 20's instead of in my late 30's or early 40's...

Josh was disappointed today, but he certainly will thank me when he is 30.
Cash, cash, cash, cash, cash... No credit.

JD