On the money: Teaching your kids about cold, hard cash

Nursing, Jul 1998

Giving your children a weekly allowance can help teach them financial responsibility. The following tips will help you turn this allowance into an educational tool:

Start when they're young. Your children will begin to understand that some things are worth more than others at about age 6.

Be specific about what the allowance will cover. In the beginning, the allowance can cover extras, such as toys. For teenagers, it can include items such as clothing and transportation.

Resist the temptation to come to their rescue. Let your children feel the effects of their buying decisions. You'll reinforce financial responsibility and they'll spend more wisely next time.

Think twice before tying allowance to chores. Pay your children only for extra-large jobs, such as washing the windows or cleaning the basement.

Encourage saving. They can put a portion of their allowance toward bigticket items such as a bike or stereo.

From The 1998 Loose Change Calendar. g 1998 Financial Literacy Center; reprinted with permission. For subscription information, call (616) 343-0770.