How do you teach your kids about money management?
September 16, 2008 8:52am CST
I've got two kids (aged 10 and 13) who I've been trying to teach how to handle their own money. I believe I should be teaching these things like saving and investing to them as early as now so that they won't have to go through the same mistakes i've made (which was blowing my money away on things that will never really earn anything for me). I teach them to save and put them in thweir bank accounts. Once they have enough, then we put it in a time deposit for them so it'll grow faster. While most of my friends prefer that their kids bring lunchboxes packed with food to school, I give my kids money to buy their own food. And I give them their allowances on a weekly basis so they'd know how to budget. There was one time though when my daughter blew her allowance in just three days. As much as I'd like to be a softie and give her some money to last till friday, I didn't. I let her go to school with just a sandwich for lunch. It's pretty tough knowing she'll be hungry but i believe i needed to teach her a lesson. How do you teach your kids about money management?
• United States
16 Sep 08
I also gave my children an allowance, but they had to earn it. If they didn't do their chores, they didn't get paid for them. Although, I never made or even now make my kids pay for their own school lunches. Their allowance is for the stuff that they think they need ,but don't really. They have learned to save up for the more expensive things and they always have money in the bank. I never let them clean out their bank account. My daughter just saved enough to buy a guinea pig. She pays for the food and the bedding and takes care of him and cleans him. My boys are older 14, 16 and 19. All of them got a job at the age of 14 at a pizza parlor and before that made money by mowing lawns. They pay for their own cell phones, bought their own cars and pay for their insurance. My 19 yr old just bought a house. My kids have never gone without, but they have learned that they have to work to make the money needed for things they want.
16 Sep 08
Sunshine4 - that is really good. Your kids are a credit to you! My kids are very young - 5 and 8, but already we give them an allowance, which they are allowed to spend on whatever they want. They have already learned that it is possible to spend little amounts constantly, but better to save up and get something bigger. We have often said that if they want something they have to save up for it, and when they went back to school this year, they both wanted new bags. We let them stew for ages working out how long they needed to save up, before we said that we would buy them for them. I think it is an amazing lesson we are trying to teach them, saving is so important, especially in these uncertain times.