October 03, 2007

Credit Markets: writ small. Really small.

I had a discussion some time ago with my two oldest children about money and how you use money to pay for things. My wife sometimes thinks I treat them too much like adults and should probably dial my comments back a little when I talk to them, but I disagree. Anyway, we talked about money and credit cards and checks and I explained to the children how each one of those things really worked.

I guess it sunk in because this is what I overheard when the Girl Child (age 6.5) and the Boy Child (age 4.5) were playing "store" next to where I was reading the newspaper (they had just agreed on the price for whatever they were buying/selling and were now arranging payment terms):

BC: Ok, I'll take it. Let me give you a check.

GC: Uh, I would rather take cash. A check is just a promise to pay, you know.

While I am quite pleased she remembered our discussion and understood it and applied it, I am equally saddened by her unwillingness to take her brother's marker. Still, an exquisitely focused grasp of reality, my little girl.

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