The Talk - Kids and Money
Taking the time to learn wise financial strategies and putting them into practice has a great impact on your children.
Research shows that the substantial majority of kids are destined for a financial future that is remarkably similar to that of their parents. So what you teach them about money is likely to stay with them for the rest of their lives!
You can take advantage of this tendency to prepare your children for a great financial future. Besides managing your own money well so they mimic positive financial choices, you can also teach your kids the practices of frugality, budgeting, saving over time, and much more with effective use of an allowance. Starting an Allowance
Try to recognize when your child is ready for an allowance. If you begin too soon, your child won't comprehend the value of the money he receives. Typically, a good starting time is when the child is old enough to understand how the allowance system will work.
There are three types of allowance systems from which to choose:
1. Gift System. The gift system is simply a weekly payment to the child. The money isn’t given based upon any work/chores the child does or fails to do. The child gets the money just for being part of your family.