Let parents bequeath to their children not riches, but the spirit of reverence. - Plato
Plato said it well. Parents are not just responsible for providing food, clothing, and shelter for
their kids. They are also responsible for teaching their kids about life…and life includes handling
money.
When it comes to kids and money, the three most common questions I get are:
1. When should I start teaching my kids about money?
2. Should I give my kids an allowance?
3. When should my kids go to work?
Teach kids about money as young as pre-school age and no later than third grade. Just think about
it: if your kids can grasp this money stuff early on, they’ll avoid many of the pitfalls latter.
After all, it’s better for little Billy to make a $10 mistake than a $10,000 mistake!
First
The first thing you can do is start paying them a commission for chores they do around the house.
Typically, one dollar per completed chore is sufficient with a list of five or six chores each
week. Remember that each child is going to respond differently. Just keep evaluating your child’s
maturity level and make sure their chores are age-appropriate.
Second
The second thing you can do is NOT give them an allowance. After all, what are you making an
allowance for? You don’t want to have the kind of kids who think money grows on trees, do you?
Don’t set them up for frustration and unrealistic expectations. And don’t miss out on the teachable
moments that come when you give them a commission instead of an allowance.
Finally
The last thing you can do when teaching your kids about money is send them off to work. “Child
abuse” is letting a kid sit in front of a TV all day playing video games and eating junk food. Kids
need to understand what a little dirt under the fingernails means. Delivering newpapers, mowing
lawns, or working at a concession stand are some appropriate jobs they can handle.
Guiding your children in the choices they make with money is HUGE! The lessons you teach them as
they earn money and learn to spend, save, and give will lay an influential foundation for their
lives. Remember, if you don’t teach your kids how to handle money, someone else will.
Dave Ramsey
Dave Ramsey is a personal money management expert, an extremely popular national radio personality
and best-selling author of The Total Money Makeover. Dave is changing the face of America by
helping people get out of debt and build wealth. Ramsey exemplifies his life's work of teaching
others how to be financially responsible, so they can acquire enough wealth to take care of loved
ones, live prosperously into old age, and give generously to others. Read more of what Dave has to
say about kids and money.
