Teaching Children How to Manage Their Money
Thank you for your insights on children and money. I truly believe that parents usually miss that mark on preparing their kids for the "real world" when it comes to money. Somehow, we expect them to just "know" how to manage money by the time they move out of the house. It simply isn't true. We, as parents, need to deliberately and conscientiously take up the reins of teaching our children how to make, manage, and save money.
While you and I disagree on the concept of allowances, I firmly believe that just handing our kids money will not teach them how to manage it. It simply is not enough. I raised two boys who are grown and out of the house, who both now struggle financially. My husband and I learned some lessons along the way, and are teaching our younger children via a new method that goes much further than the typical 3-step "budgeting" plan for kids (save-give-spend). Our teen girls (still at home) are expected to budget for all their expenses, put money away in savings, tithe to our church, and even begin investing by the time they're 15. It has been working very well. They are forced to make their own financial decisions (whether to buy Starbucks a few times a week or save for that new backpack to replace the old one), and it's okay to learn by failing. The consequence of "No Money Left" is a good teacher!
I go into detail about how we do it on my website here: http://www.faithfulstewardinvesting.com/responsible-teen-money-management.html
It's good to find a kindred spirit on the world wide web!
Best of luck to you!
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