My belief is that children should receive “pocket-money” or “allowance” as their small share of the family-wealth just as they should share the workload at home. This is not to say that the family income is divided equally between all members. Rather, children are given a realistic sum of money, given their age, needs and ability to deal with money. We talked about that concept last week with allowance, age and expectations.
It makes sense to provide guidelines about spending including letting them know just what they are expected to buy.
Pocket-money can teach children a great deal about goal-setting. By encouraging children to save for a big ticket item such as a bike or skateboard children learn a great deal about planning and looking ahead, the value of budgeting and experience personal satisfaction of reaching a goal.
Listen in as I share some stories and concepts that I feel are critical to developing good management skills for adult life.
What methods have you used to teach money management in your home?