As we talk about in our book “Money Monster or Money Master?” kids can’t really learn to skate without putting on skates and getting on the ice. The same is true for learning how to manage money.
We believe that you need to give your kids the opportunity to have money to manage (and whether you do the traditional Allowance for Chores method or our Money for Management method) they need to have control of their cash.
While our Money Master Management (Mmm) system divides their money into specific categories it is important to let them decide how and where to spend from each jar. If you believe they are deciding to spend it frivolously, don’t step in and deprive them of that valuable life lesson.
Let them make mistakes. It is how we all learn. At your next opportunity (we hope you are using our “Allowance Hour” to talk about money on a weekly basis); talk about the money they spent, what they spent it on and how THEY feel about the decision they made.
Don’t make the conversation into a “I told you so” lesson, but rather, let them tell you how they feel and ask them what they would do differently in the future. Remember asking kids to find their own solutions, gives them power and teaches them accountability as well as bolstering their self esteem.
Better to let them learn a money lesson while living at home, than waiting until they are in the real world where mistakes are costly and sometimes financial suicide.
Have you Considered your Children’s Future YET?