Kids and Money!

When my kids, Nick and Sarah, were entering middle school, I conducted an experiment with money!  I was a single parent earning less than $40,000 in my public sector job.  There was only a bit of money available each month for discretionary items.  When kids get to be in their tweens and teens, they start asking for more expensive items from their parents.  I wanted Nick and Sarah to feel that they could buy what they wanted, within reason, and feel that there's was enough money in the household to support their desires.

I had $300 available each month for discretionary items.  I decided to divide this number by three and give each of us $100 each month.  I felt good that they could buy what they wanted with those funds and that I wouldn't feel the strain of having to repeatedly make decisions about what they could or could not have.  I delegated this decision-making to them by giving them each a chunk of money to manage on their own.

The experiment worked really well!  Nick was a saver and had enough money in his account at age 17 to buy an expensive road bike.  Sarah, on the other hand, was a spender!  But she never spent more than what she had from month to month and made great decisions about what to buy for herself.

Now in their 20's, they are in great shape financially.  It's my belief that this experiment served them well and that they took great skills into adulthood.   And I feel good as a parent that they have skills which they were unlikely to get in middle or high school.



Take action:

• If you have children, consider conducting a similar experiment to help your kids learn how to handle money in a safe, home environment.
• If you don't have children, consider forwarding this post to someone who does.  Our households, neighborhoods, and communities will greatly benefit:  People who manage their money well contribute to the vitality and stability of their communities.

Copyright 2012                            Connie Livingston                  All rights reserved