What You Need to Know About Giving Your Children Allowance

70 percent of kids get some kind of allowance nowadays. If you’re considering giving an allowance to your kids, here are some basic things to consider:

According to a research by T. Rowe Price, 70 percent of kids get some kind of allowance nowadays. It’s essential that parents empower them with financial knowledge and freedom.
While there are arguments against giving allowance to kids, two studies from the “Journal of Economic Psychology” and T. Rowe Price indicate that kids who receive allowances tend to be more knowledgeable than kids who don’t.
Studies have shown that a good number of parents are poor financial role models for their kids. If you’re considering giving an allowance to your kids, here are some basic things to consider:

1 | Have a plan

Before you place your kids on an allowance, consider your motivation for doing so. Why do you want to place them on an allowance? How much? How often? And most importantly, what do you hope to achieve by placing them on allowance?
Make a decision about whether you’d like to give your kids a weekly or a monthly allowance. A weekly allowance may be more appropriate for younger children, as monthly may seem like too long a time span.
No matter how small a child’s allowance, you should encourage them to save a little from each, then talk about the benefits of saving money for the future.
It’s vital to keep a future goal in mind when considering an allowance plan for your child. Helping them set goals (and sometimes limitations) and sticking to a plan plays a significant role in guiding them.

2 | Brighten their financial future

Giving your kids an allowance can make their financial future brighter. Kids who receive an allowance prove to be better with money than kids who don’t.
Allowances give kids practice handling money. They learn some basic money management skills that will guide them toward eventual financial independence.

3 | Talk to your kids about money

Yes, giving your kids an allowance is important, but, that alone will not teach them everything they need to know about money. You need to talk to your kids about money, too.
Kids whose parents often talk to them about money have more confidence handling money than kids whose parents do not. Even talking about money in the presence of kids is good for them.
A study by the American Institute of CPAs (AICPA) indicates that kids commonly use their allowance money to purchase toys and to hang out with friends. This is mostly because parents are more comfortable and accustomed to talking about drugs and bullying than spending and saving.
Encourage your kids to set up a spending plan for their allowance. Show them an example of your own spending plan for the month, which may include gas expenses, groceries, electricity bills, and repayment of debt or a mortgage.
The more kids engage in financial discussions, the more likely they will learn valuable financial lessons and develop good money management skills as they grow older.

4 | Never base allowance on chores

One mistake some parents make is to base their allowance on certain conditions, such as chores to be carried out by their kids. Giving kids allowance based on chores is akin to giving them bribes.
This is not to say it’s not good to reward kids for good behavior or for performing chores at home. It just shouldn’t be tied to their allowance.
Research by UCLA researchers, Eva H. Telzer and Andrew J. Fuligni indicates that kids who don’t get paid for chores feel a greater sense of self-worth and contentment than kids who do.
When you pay kids for chores, you send a message that chores are optional, or worse, that they are not equal participants in the family. When they grow older, they may decide that the money isn’t worth the chores and stop participating altogether.
Also, never hold back a child allowance as a punishment for something they did wrong. A well-formulated allowance plan shouldn’t aim to control the child. The allowance should give the child the freedom to apply some independence and make some of their own choices. Keep in mind that we’re training our kids to be responsible adults, not imposing our will upon them.

5 | Let them make mistakes

People make lots of financial mistakes, and kids are no exception. Giving your kids allowance will enable them to make some mistakes, and that’s okay. These mistakes will give you the benefit and opportunity to educate them better on the importance of financial literacy.
Making mistakes now will help kids better manage their money in the future. For instance, a child is saving to buy a video game, but falls short of the complete payment because of an uncontrollable urge to buy an ice cream. Resist the impulse to make up the balance money for him and encourage him to save more to achieve his end goal.
Let kids learn as much from their mistakes as they will from making good financial choices. Help them celebrate the wins and talk over the unwise choices. Teaching your kids the consequences of poor financial decisions will help them in the long run.
This singular lesson can go a long way in setting them up to become sound financial managers in the future.

Raising a Financially Savvy Kid

These are some straightforward ways parents can take the ‘money bull’ by the horns and help their children start out on solid monetary ground.

Man, there is a lot to think about as a parent these days.
We hear a lot about the importance of things like increasing self awareness and meeting our children’s individual needs. While I’m sifting through parenting articles, knee deep in self-reflection, sometimes I neglect the basics. You know, like, teaching my kids about money and how they can use it for survival. Oops.
Whether we want to believe it or not, money plays an important role in our lives. We literally can’t survive without it. So it’s time to drop any discomfort we may have around the topic and start to face the financial parenting music.
It’s been reported that only 22 percent of kids say they talk with their parents “frequently” about money. It’s no wonder credit card debt continues to skyrocket among youth – debt that will follow them far into the future.
By ignoring the topic of money, we are doing our children a disservice that will have far reaching effects on their relationships and quality of life down the road. Here’s some straightforward ways parents can take the ‘money bull’ by the horns and help their children start out on solid monetary ground.

Let them open their own bank account

Young children can benefit greatly from learning the ins and outs of keeping and saving money in a checking or savings account. This one threw me a little at first when thinking of our own five- and seven-year-old daughters. But as I reflected on it further, it started to make perfect sense.
Our kids are ecstatic to have money (duh), which usually leads to the following situation: a sweaty-fisted child carrying around crumpled dollar bills and germ infested coins wherever they go, followed by frustration and whining regarding said dollar bills getting “stolen” or lost. I’m now realizing responsibility for this situation falls more in the category of ‘parent fail’ as opposed to ‘unorganized offspring.’
Offering children a safe place to keep their money while they learn the important skills of saving, personal responsibility, and social skills seems like a no-brainer. Here are some practical tips on opening up a bank account for your child.

Set long-term goals together

Of course, kids would feel overwhelmed if we made them aware of every financial transaction in the family. But much can be learned from parent modeling of good financial planning. Both parent and child can set their sights on longer term spending, creating an opportunity for collaboration on a savings plan to achieve a common goal.
Children live in the present. But shifting a child’s immediate desires into achievable goals helps them develop a ‘big picture’ mindset. The principles behind saving money also teach children delayed gratification, patience, and perseverance – positive habits that will translate to the long term in many different areas.

Let them spend

Our children see us spend money all the time (or more likely, use a small plastic card in exchange for goods). This doesn’t give them the same benefits of a hands on experience with money.
Many experts advocate allowing your child to take ownership over a consistent expense, such as school lunches or clothing (for older children). This places them in a decision-making role, for better or for worse. It’s better for them to make mistakes now as opposed to later, when the stakes will be much higher. It likely won’t take long before they realize not only the value of a dollar, but also an increased appreciation for what they already have.

Use a pig

Yes you heard me correctly, and it’s actually pretty badass. This money saving pig is like a piggy bank on steroids, helping parents break down different areas of finance into saving, spending, donating, and investing.  
This instills the powerful habit of pausing and putting thought into where our money goes early on. The money saving pig makes doing these things fun, which peaks a child’s interest and increases the likelihood of follow though and long-term success with financial goals.

Teach through technology

We know about the many positive effects of using screen time to engage in pro-social games and apps, so why not use some tech time to increase financial acumen? There are fabulous tools and websites aimed at helping kids navigate financial territories.  
An awesome new app called Kidibank ™ helps parents allocate allowance and supports kids in tracking their earnings with their own emoji character. In addition, the Consumer Financial Protection Bureau provides a great age-by-age online resource to assist parents in developing smart money skills. No matter your views on screen time, there’s no doubt kids respond to technology. So why not use it as a tool for their benefit?
“Money on its own is neither good nor bad. It is a means to an end.”
When we talk openly about money and demystify things like earning, income, saving, and investing, we give our kids the information and power to make wise financial decisions. I think we can all agree that is an investment that will pay off in dividends.

Stop Giving Your Kids Free Money

It’s time to teach your children about this important money principle: “No work, no money!”

“Stop giving me money! You are not helping me become financially responsible. Give me work instead to earn money!”

Last August, when I was teaching financial literacy class at the National Association of Real Estate Brokers (NAREB) Annual Youth Academy in Long Beach, California, this was what I asked all my students to say to their parents, grandparents, aunts, and uncles when they went back home that afternoon. At first they were shocked at the idea of not getting free money anymore, but later, many of them were excited about working hard to earn their own money and feel proud of it.

Money is earned, not given

Parents know that most people have to work to earn money, but many kids don’t understand this basic reality – largely because things have been simply handed to them by their parents or other family members. These kids take things for granted and make entitled demands.

The most common cause of childhood entitlement is the lack of education surrounding money, and parents of every income bracket are guilty of this. They give their children money without making them work for it, and the children spend it (almost immediately!) without any understanding of where it came from, what it took to get it, and how to use it properly. In doing so, they can become money monsters.

Some parents are afraid of the idea of having their children work hard; they treat their children like delicate flowers in a greenhouse, or even worse, put them on a pedestal and almost worship them. It’s no wonder those children never grow up to be responsible men and women – they never learn how to. It’s time to teach your children about this important money principle: “No work, no money!”

Give your children age-appropriate chores and rewards

There are many things that your children, young or old, can do to earn money either in or outside the house. Be creative and work together to come up with a list of achievable goals. This will set your kids up to accomplish what you need them to and they’ll feel proud of their own efforts.

Then reward their work. When we reward small accomplishments or actions, it drives kids to do even more – to set bigger goals.

If this is your first time implementing this kind of concept with your young children, maybe you have to begin with just a couple of chores. Make the reward small but inspiring. As the days or weeks go by and your kids get better at doing this, gradually increase what they need to get done so they can earn more. Later, when they’re older or just wanting to earn more money, you can add more chores that they can do in the morning or after school.

Chores you can let your kids do to earn money right away:

  • Emptying the trash
  • Sweeping, vacuuming, mopping the floor
  • Dusting
  • Putting toys and books away
  • Bringing in the mail
  • Watering plants and flowers
  • Raking leaves
  • Dishwashing
  • Sorting laundry
  • Setting the table
  • Pet walking
  • Washing the car
  • Babysitting 

Be consistent with your reward system

It’s very important that you use the reward system all the time. I’ve created a simple reward system chart that you can start using for your little children (download it for free from my website.

Put the chart in the place that gets the most traffic in your home. In ours, that’s the dining room area, where we gather to eat, do homework, and have family meetings. Having the chart in this room means that everybody can see it all the time, and it reinforces their progress. Kids begin to feel good about watching the chart fill up with check-off times, signatures, and the chores they accomplish every week.

In life, we usually start small to win big. We begin at the beginner’s level to become masters of our goals, our values, our finances, and our lives. Learning at a young age that effort produces rewards teaches us to become responsible with our time, energy, and money management to become money masters.

3 Simple Ways to Help Foster Independence in Your Grade-Schooler

Our son, now seven years old, is at the age where he is “not a little boy!” There could be no greater insult. So whenever I have an opportunity to let him try on his inner teenager, I jump at the chance. These days I’m on a mission to prime my kid for the real world by teaching him how to pay for things, prepare a meal, and shop for groceries.

Allowance

As a member of the household, our son doesn’t receive an allowance for doing things that he should be doing. We teach him that none of us get paid for cleaning our own environment. We clean up our shared space out of respect for one another. It’s not a perfect system, and the “shared space” is often littered with Legos, Nerf darts, and paraphernalia of days passed. It’s a process.

Nonetheless, our son receives $7 a week – one dollar for each year of his precious existence. He is free to do with that what he will. It’s an opportunity to learn about saving, giving, spending, and most of the time, delayed gratification. It’s tough to watch him spend it “recklessly” on candy or a video game, but then equally rewarding to discuss ways to save up for a coveted toy.

“How about you buy it now and I pay you back for it when I have my allowance?” is a current favorite. I’ve subsequently introduced the terms “lay-away” and “interest bearing loan.” Through it all, he’s learning the value of money, the surprising ease of spending it, and the need to save it for more “important” things.

Meal preparation

Weekends are precious – particularly lazy, slow-to-rise mornings. We’re still enjoying the endearing stage of bed-filled cuddles and mom-and-dad-sandwich hugs. And sometimes mom and dad want to hug alone for a while, wink wink.

“Hey buddy, I have an idea! How about you surprise mommy and daddy with a special breakfast?”

“Ooh, yeah, that sounds like a great idea!” our little chef says. This is a new exercise and unlikely to be Michelin three star-rated, but for 15 private minutes, buttered cardboard would be cause for celebration.

“It’s ready!” comes the announcement from the foot of the stairs. My husband and I galloped down and were rewarded with the most unexpected and beautiful display of love and creativity in a meal.

“I know you like toast and dark chocolate, so I put a piece of chocolate on each slice and decorated the plate with pieces of banana because I know how much you like fruit. Daddy, I know you like cereal, so I poured you a bowl.” 

It was more than the act of our son’s independence that struck me that morning. His ability to observe us, understand our likes, and assimilate what brings each of us joy was jaw dropping. Three huge smiles joined us at the table that morning.

Grocery shopping

Our family had been drooling about vanilla pudding but I was out of eggs. Our delayed cooking lesson was about to turn into an opportunity to get some fresh air, take the dog for a walk, and earn my son some independent stripes and bragging rights.

It’s no small feat to get my son out the door for any activity. It takes a bit of coercion and creative thinking on my part. “I have a proposition for you,” I said to perked ears. “How about we go on an adventure to the store. We’ll walk and when we get there, I’ll wait outside with the dog and you can hunt down the eggs and pay ALL BY YOURSELF.”

“YES! That sounds amazing!” he exclaimed excitedly.

I scrounged up some cash, saddled up the dog, and we headed half a mile down the road. On the way, we discussed all things eggs – white ones, brown ones, medium-sized, large-sized, free-range, organic… When we finally arrived, I had armed him with all of the information and financial resources that he needed.

Reusable bag slung around his shoulder, six bucks in his pocket, my little man entered through the automatic doors and disappeared beyond the produce section. There was no telling how long this would take, but it was of no consequence to me. The dog and I patiently waited outside, knowing that magical things were happening inside.

Fifteen minutes later, my beaming child reappeared with an awkwardly slung egg-filled bag around his shoulder. He proudly spoke about the organic eggs that he not only found, but inspected for damage. He headed toward the register, paid for the eggs, and calculated that he even had enough cash to pay for candy – a win for him. He recalled his entire adventure, noting every important aisle twist and turn.

Each of these moments provided our son with an invaluable opportunity to build his self-esteem and flex his burgeoning muscles of independence. He was able to relish in the afterglow of giving and, thanks to vanilla pudding, I was able to discover some simple ways to let my son know that I deem him trustworthy and capable.

Now I can build upon these successes and watch this little human grow – then confidently unleash him into the world.

4 Money Lessons Kids Can Learn on Vacation

Even as you put your feet up and relax, you can also teach your kids valuable lessons in money – what it takes to save and stick to a budget.

When you imagine your next family vacation you probably picture yourself lounging on a beach as the kids play in the sand, or taking in the culture and sights of a new city, or simply riding the Big Loop roller coaster after a generous serving of fried dough.

Wherever you go on vacation this summer, you’re hoping the experience will be relaxing and fun and a break from the hustle and bustle of everyday life.

But even as you put your feet up and relax a little, you can also teach your kids some valuable lessons in money – what it takes to save for something big and stick to a budget.

Since only 17 U.S. states require students to take a class in personal finance, it’s up to parents to teach kids how money works. A family vacation can be a great way to get started.

Here are four ways you can teach kids about money on your next vacation.

1 | Involve kids in planning the trip – including the budget

Start by letting your kids know how much you have to spend on the trip and which destinations reasonably fit within that amount (Hawaii’s out but the California coast is in). Once you decide on a destination, let older kids research what the family can do and see at the destination. Next, look over the cost of each activity and determine what’s affordable within your family budget. It could be eye-opening for kids to realize that going hiking is free while spending the afternoon at the aquarium is over $100.

2 | Set up savings goals for the trip

While researching the trip your kids might discover that going whale watching and visiting Disneyland would stretch the budget too far – this is the perfect opportunity to demonstrate how spending goals can be reached by cutting back on other expenses and earning extra money.

Ask your kids if there are ways the family could afford to pay for both activities, and then offer a few suggestions. Maybe you’ll agree to seek out less expensive dining options at your destination or decide to cut back on movie theater visits before the trip. Kids could also flex their entrepreneurial muscle to earn money toward the goal by mowing neighbors’ lawns, pet sitting, or setting up a lemonade stand at the local farmers market.

3 | Get kids involved in booking airfare and hotels

Not all kids will have the patience to sit down and pore over airfare and hotel fares, but as much as possible, getting kids involved in booking airfare and hotels will be a good lesson in comparison shopping. Is the family willing to take a 6 a.m. flight to save $400? And while the resort with the cool pool might be appealing, is it worth it to splurge on accommodations instead of spending that money on attractions?

4 | Designate a daily spending budget for kids

The temptations are endless on vacations. First there’s the cotton candy, then the glow-in-the-dark souvenir magnet, and let’s not forget the tie dye t-shirt. Kids will understandably want it ALL. But if given a budget of say, $20 or less a day, kids will have to make decisions about what’s worth spending money on and what’s not.

And if your kid sees something for more than $20 that they can’t live without, encourage them to either bring along allowance money or earn extra spending cash before the trip.

5 | Real Memories

Family vacations provide a host of lasting memories, like the time the whole family parasailed over the Caribbean or got lost in the back trails of Yellowstone. That’s part of why we take vacations – to bond as a family.

But with very little effort, kids can (often unknowingly!) also gain valuable financial skills. These lessons will serve them well as they enter adulthood when they need to save and budget for bigger purchases  – ones that go beyond the amusement park fried dough.

Do This One Thing So Your College Student Can Manage Money

Knowing how to manage money and stay out of debt can alter the future of any adult – especially those just starting out.

Over the next few weeks, college-bound high school seniors will be walking the stage dressed in cap and gown, receive their diplomas, and begin preparing for their first year of college.

For many of them, this will be the first time they will live independently – do their own laundry, hopefully keep their room in order (yeah, right), and manage their own finances.

While the first two aren’t make-it-or-break-it life skills, knowing how to manage money and stay out of debt can alter the future of any adult – especially those just starting out.

With about 70% of college students accumulating $28,400 in student loans, today the stakes are even higher for college students to manage their money well. The moment these students graduate from school they will need to determine how to pay off these loans while living within a budget they can afford.

The one thing parents can do to set teens up for success

So how can parents ensure their teens are ready to handle the responsibility of managing their own money?

According to the 2015 Money Matters on Campus report, that surveyed 42,000 college students, other than taking a financial literacy class in high school, the one experience that proved to make teenagers feel most prepared to manage money was having their own checking account.

As the report says: “Respondents with a checking account, especially an individual account…were markedly more prepared than those who [didn’t have one].…experience with managing a bank account is a key component of developing independent financial capability.”

In other words, having the experience of managing the deposits and withdrawals of a bank account BEFORE college – and before students’ financial lives become even more complex – means one more thing college-bound teens can feel confident about when they head off to school.

But don’t do this

But what about credit cards? Shouldn’t teens also have experience with credit before leaving for school?

According to the Money Matters survey: “Feeling prepared to manage money in college was not related to a student’s experience with credit cards – it actually decreased as they got cards earlier in life.”

While the report doesn’t say why this is the case, managing credit can in some ways be easier (in a bad way) than managing a bank account – credit cards permit delaying payments until later whereas a bank account is a zero-sum game – either you have enough cash in your bank account or you don’t. Hard choices have to be made when there is little money left in a bank account, while those same decisions rarely exist with access to thousands of dollars in credit.

Don’t forget to have the talk

Beyond giving your teen a bank account, don’t forget to also talk to your teen about how to manage finances.

According to a survey by H&R Block, 75% of teens say their parents are their most important source of financial information. And kids whose parents frequently discuss money with them reported feeling more knowledgeable about personal finance, than kids whose parents don’t discuss money with them.

These financial talks can range anywhere from how to write a check to the impact student loans can have on a graduate’s financial future. It’s also a good idea to explain how credit cards work and the real cost of an item if the card isn’t paid off at the end of each month. Even if your teen won’t have a credit card in college, now is the time to educate them.

The value of a good education

While going to college is certainly a major accomplishment, both for the student and the parents who got them there, being well-educated in basic personal finance can be equally impactful on a student’s future. If a student is unable to manage money, it really doesn’t matter how high-paying a job they land after college.

So while you prepare your teen for college, make sure they are also educated in personal finance – have them open a bank account, hopefully before their senior year – and find the time to educate them about the ins and outs of basic personal finance.

11 ways allowance helps your kid understand money

There’s little argument at this point that handling money as a child will prepare you for handling money as a young adult and eventually, as an adult. Great. But what exactly (as in literally) do the benefits of giving allowance look like? Why is it such a valuable commitment?

Well, imagine for a moment, that you have been giving your children money each week from the time they were four years old and each week they were encouraged to make decisions about the money. Imagine if you handed over the gift buying power, the junk food buying power, the cheap “crap” purchasing power, and so forth.

Imagine if you allowed your child to experience the frustration when she didn’t have enough money to go out with friends, buy the perfect jeans or pay for her car payments. If you can imagine these lessons during childhood, you can imagine her respect for money heading into the real world.

The Benefits of Giving Allowance (Why it’s worth the inconvenience of getting cash and handing it out!)

  1. Kids, at an early age learn the true value of money. As in, what can I buy for one dollar? $100?
  2. They discover what money can and can not do (happiness is not in the box you waited all month to buy, only to forget about a week later).
  3. They learn the “real” way how hard it is to save money and how easy it is to spend money.
  4. Kids develop a keen ability to assess what purchases are really important to them and which they can do without. (They’ll eventually say things like, NO. NOT WORTH IT… and walk away).
  5. Kids discover things about themselves Am I a saver? Am I a spender? When will that benefit me? When will it not?
  6. Kids who buy their own things, DO NOT expect the adults around them to buy them stuff. In fact, they stop asking.
  7. Kids learn to negotiate, barter and work together. (i.e. If one kid only has 15 bucks and his brother pitches in five, you bet they come up with creative reimbursement plans!).
  8. Kids who carry their cash grow independent. There is no need to ask mom or wonder what she’ll say or how to sweet talk her (note: no fits because the answer is yes if the child has money). The child simply walks over, and decides if he wants to purchase or not.
  9. Kids who make mistakes with their money have learned the good old-fashioned hard way money has value, it can go away and with time, you can earn it back– financial resiliency is valuable.
  10. Kids who spend enough time practicing also have time to understand and make a judgement that sometimes, it’s ok to say– it’s only money– and there are things more important than a wad full of ones.
  11. And finally, as a result of their experience with money, kids develop a strong work ethic and an appreciation for everything you provide.

Also, it’s Good to Note

Kids learn to keep their money safe, lend it to those they trust and how to make interest in inventive ways. (As in, hey, I’ll buy you a donut if you pay me back – plus extra).

Kids, Money and Allowance

The importance of teaching financial literacy to children cannot be overstated. Over at Good Men ProjectZechariah Newman wrote a revealing, useful post about kids and money. I agree with each of the seven money topics he thinks parents should discuss with their children: abundance, give, invest, debt, save, spend, perseverance.

I believe that the best way to teach financial literacy is through experience. That means giving kids an allowance. Vicki Hoefle [stag_icon icon=”twitter” url=”https://twitter.com/vickihoefle” size=”16px” new_window=”yes”] of Duct Tape Parenting has been my guide on this topic.

Vicki believes that there’s one goal behind an allowance: teaching children about money management. That includes saving, spending, and donating.

She doesn’t recommend using allowance as a reward, or to pay for chores. Giving money out for those reasons won’t necessarily teach kids how to manage it. And kids should be contributing around the house anyway.

Letting your kids choose how they spend or save their money is a key part of this approach. If they want to spend all their allowance on junk food and crummy toys, week after week, fine. It’s their money, their choice and eventually their lesson.

Over on PBS Newshour, Vicki writes:

“It’s also important to remember that you become a smart consumer by actually being a consumer. Initially, five-year-olds are not what anyone would call savvy. They get $5, they spend $5 — almost immediately. But by the time they are 10 and have practiced basic money management, they are much more thoughtful and educated consumers.”

A genius element of this approach comes into play when your kids nag you to buy stuff for them when you’re out shopping. All you do is repeat variations of “Did you bring your allowance?”  If they brought it and have enough money, then they can buy whatever they’re begging for. If not, sorry kid. I feel your pain, but already gave you the allowance.

In my house, we started following this practice two years ago. At first our four-year-old spent her allowance on small items like Pokemon cards and Legos. Now, two years later, our six-year old has learned to mostly save. (She currently has over $100.)

Even better, she almost never pleads for us to buy stuff when we’re grocery shopping or at a store.  It took some time, but this approach is now a family habit.

I will admit that this approach has backfired on me. Now that she has her own money, bribing her has become a lot harder. Can’t bribe her with Pokemon cards, for example, because she can buy her own.

A couple other tips from Vicki Hoefle:

  • The child should have a wallet for their allowance.
  • When they’re old enough, help them open a bank account.
  • Never, ever front them money if they forget their allowance when you’re out at a store.

There’s a lot more on Vicki’s blog, including how much to give your child every week.

Allowance: Don’t Wing It  (“In order for you to implement a successful system, you must first ask YOURSELF key questions about your family’s relationship with money.”)

Allowance: 15 Ways Kids Can Rock a Healthy Relationship with Money 

Here’s a podcast from Vicki on the subject.

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