Tip of the week: How to teach kids about money

Give weekly allowances; Let them foot the bill; Keep tabs; But don’t micromanage

Give weekly allowances. This age-old practice still works. The “general rule of thumb” is to halve the child’s age and give that number in dollars, though the family’s budget should be considered.

Let them foot the bill. If Bobby wants a new Wii game, let him use his own money. Kids learn how much cash is worth “when it comes out of their pocket.”

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE
https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up

But don’t micromanage. Kids will make mistakes with their spending, but the ideal time to learn is when the “financial consequences are low.” Open savings accounts in their names to get them used to “tracking and balancing” their own finances.

Source: Family Circle