Raising Kids Who Understand Money, Not Just Spend It

I wish I have a personal experience to share against this but I grew up in home where I got money from my dad almost everyday he is about to leave for work because he wanted to make sure his children are cared for while he is away. It made me grow up as a girl with her own money.

Well, technically it's my dad's money but he never asked for it back so it was all mine and I got whatever I wanted with it for myself. The same for my siblings, we understood quickly the value of money but not the wisdom to save or use it wisely although we've learned that later in life.

Where this is going is, I don't think it is okay to give kids an allowance if the parents or guardians are not ready or willing to teach them how to use it for them to grow in a healthy relationship with money. One thing that is bound in the hearts of children is foolishness, they should be taught.

And that is in every aspect including what they learn about money, from the people around them. I think it's a great idea to teach children the value of money in our world today but we must not stop there, we must show them how money is a tool and must be earned for it's value to be used.

And yeah, that point about them being under the same roof and being provided for, is valid. But I believe teaching your kids early how to use money to make money and make it work as a tool for them is a win any parent will enjoy later in life. To an extent, money is like a course to study.

If a parent won't want to go through the process of teaching their kids about money and giving them some money to put to practice what they learn, the alternative is for the parents to create a bank account for their kids and start saving for them, like help plan their future before they learn.

I don't see anything wrong with giving your kids allowance but imagine your kids having a good knowledge about money and save from those allowances to save you later when you least expected... That's the power of teaching them the money rules before you give allowances to them.

It's true that kids won't have much to spend on when you give them allowances because you're already providing everything they need, this is a more reason you should teach them how to save, help someone, maybe even teach them how to invest little money when they are at a certain age.

I hope my point is clear enough... Kids can get allowances but imagine such kid having the wisdom to share that allowance into segments so they can save while they still get the sweets or chocolate they crave and these kids come up one day to give their parents some money randomly.

"Catch them young", in using money as a tool.