Raising Financially Savvy Children

No More Handouts
"Parents should stop buying things for their kids (I know this may sound cruel). Instead give them a steady allowance and teach them to save for those things they really want. This method not only teaches them about saving but also about something called responsibility. After saving several weeks to buy that much needed Power Ranger action figure, they suddenly feel that their diligence and patience is more rewarding than that sad puppy look and persistent wailing."
--Parent Soup member Father of 3

Teach Responsibility While Keeping the House Clean
"In our house, we use a combination of allowance and a 'Mom Box' to help teach responsibility, financial and otherwise. The Mom Box is a box or basket (or whatever) that you put items in that your children leave out. Then you have a pre-set amount of time an item must remain in the box (let's say three days). If the child feels that they must have it now, he or she may pay a pre-set amount of money (maybe 50 cents) to get it out early. When used consistently, it really works well."

--Brandie, California

A Voice Against Allowance
"I've found that allowances don't work because they are based on responsibilities, and responsibilities are not optional. My children have no choice but to clean their rooms. I told them that to support their habits and hobbies, they have to make the choice to do some other kind of work for pay -- either special projects around the house or outside work. My house has never been cleaner."
~ Shanon, Florida

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