How Can Kids Learn About Money Without Allowance?
At this point, we don’t give our children allowance. Partially because our budget doesn’t allow for it and partially because we don’t see a need for it. The most common objection we hear regarding this decision is “But how can kids learn about money without allowance?”
Our parents chose to talk about finances when kids were around so we heard a lot of things growing up that helped us understand how money works.
As someone who has seen the financial state of many young families and the lack of understanding when it come to basic principles of money management, I’m reminding you to please involve your children in your finances from a young age. The best way for them to learn is to witness those principles applied in real life situations. It may feel unnatural to involve your children in something that many feel should be private, so start small. Perhaps they could stuff envelopes at bill paying time. If they are older, you could show them how to pay bills online by letting them read the statement and enter the numbers. Maybe you could put your children in charge of recording expenses. However you start, you will never regret teaching them how household money flows.
Do you have any other tips or stories to share about how kids learn about money without allowance?