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Teach your children how to handle their money

31-Mar-2016

Avoid creating a ‘pay-back’ society where children only help if they get paid.

Don’t pay your children for the regular chores they do around the home, otherwise you create a ‘pay-back’ society where they only help if they get paid.

Having said that it’s important that children learn how to handle money. They need some money which they can manage themselves and over which they have an element of choice.

I suggest each week you give them half their age in dollars. So a six year old gets three dollars, and eight year old, four etc.

A smart plan is to put it in three jars, while they are small and learning how money works:

•    One third is to spend

•    One third is savings

•    One third is family tax

With family tax they help support the world vision or Tear Fund child etc. your family supports.
And, on holiday the family votes as to what they use the combined family tax for as a special outing treat, ride etc.

All children need to learn to make age appropriate choices and especially when it comes to the value of money. I have dealt with wealthy parents whose children have stolen because they have no money of their own to manage.

Children will quickly learn that if they spend all their money on ice creams there won’t be enough for the toy they want.