Kids and money March 23, 2007

Great post about kids and money from one of my favorite blogs:

Allowances for Kids: Teaching Children the Value of Money

I especially like these recommendations taken from the article referenced there:

• Pay an age-appropriate allowance.
• Allow her to make her own choices and her own mistakes. It’s better for her to learn a lesson with $10 as a kid than with $10,000 as an adult.
• Pay him in cash. Kids are more apt to learn from the real, physical stuff insted of something abstract like a prepaid credit card.
• Give her specific financial responsibilities and don’t bail her out.
• Be punctual about payday.
• Be careful about tying an allowance to routine chores. Some experts warn that this can create a mercenary attitude in children where they want to know how much they’ll get paid for doing a chore. A better approach is a “salary” type allowance. Some people view chores as part of a family obligation and refuse to tie them to an allowance at all. 

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