How do you feel about giving allowance?
In 2017 KRC Research, a public opinion research consultancy, reported that 67% of U.S. parents give their children an allowance, and 49% give their children money for earning good grades in school.
Despite the survey results, there’s little consistency in the way allowance is issued among families nationwide.
Some families distribute allowance based on completion of chores or household tasks. Others issue a set rate so that young children can gain experience managing money. Some families use allowance to curb bad behavior at school or at home, issuing allowance for the demonstration of positive qualities and traits.
Ron Lieber, personal finance writer for The New York Times, posits that these are the three primary approaches families take:
(1) No chores necessary. Children are simply given money weekly or monthly,
(2) No allowance at all, or
(3) No free money. Allowance is linked to chores or other work.
Is there a right and a wrong way to give your children allowance?
Let’s start with the pros and cons, then move into the “when,”“how,” and “best practices” questions we consider when deciding whether or not to give allowance.
Continue reading “Is There a Right and Wrong Way To Give Your Child an Allowance?”
Vocabulary. Reinforcing themes. Crafts. Math. Teachable moments.
Most money management experts and professionals recommend that we embed personal finance lessons into the imaginary games that children instinctively already play.
Throughout our day-to-day activities, we should provide opportunities for children to better understand exactly what money is and how it is used.
In “15 Ways To Teach Kids About Money,” Dave Ramsey organizes his philosophy into three primary categories.
First, he presents ways we can teach preschoolers and kindergartners about money.
Second, he outlines steps we can take to teach elementary and middle-schoolers about money.
Finally, he provides money management recommendations for teenagers. Continue reading “How To Teach Preschoolers and Kindergartners About Money”
What are your favorite personal finance resources?
I was inspired by a new podcast this weekend, “So Money with Farnoosh Torabi,” and it led me down a rabbit hole of Tim Ferriss’s YouTube videos, blog posts, and podcast episodes. I’m almost embarrassed to admit that, before yesterday, I hadn’t actually heard of him.
This post will be brief because I’m just gathering resources for now, but I’ll take a much, much deeper dive later on once I’ve made time to really read and evaluate them.
If, like me, you’re just getting started on your personal finance journey, these recommendations may or may not be new.
If you know of others that have changed your mind on spending, saving, and investing, I’d love to hear them.
More to come!
Continue reading “50 Personal Finance Books Recommended For Adults & Elementary Aged Children”
How soon is too soon to learn about managing money?
A few months ago I learned some alarming facts about debt and money management.
According to NerdWallet’s 2017 American Household Credit Card Debt Study, the average American household with credit card debt has a balance of approximately $15,432.
Indebted households pay hundreds in interest each year, and many Americans use credit cards to cover medical expenses.
Nearly 1 in 10 of those earning more than six figures annually said they struggled to make ends meet.
We need to have a conversation about money. Continue reading “Money Milestones For Children And Young Adults”