Comments on: Giving Teens an Allowance – Money Management Tips for Parents

By: Karyn Hodgens

Karyn Hodgens — Mon, 18 Oct 2010 19:34:06 +0000

I agree, Janice, that life has a knack for throwing a lot of stuff at us. And, for the most part, I think we do a pretty good job of managing it all. Case in point, by giving your kids the responsibility of managing their own allowance, you’re teaching them the skills they will need to manage money effectively on their own one day.

As far as the bath and beauty products, I would absolutely have those included as a part of their allowance…for several reasons.

First, they’re old enough to be taking on more responsibility. Adding these items to their budgets is getting ever so close to the real thing…and they need the experience.

Second, it’ll help them develop savvy shopper skills as they look for coupons, sales, etc.

And, third, it’s one less thing YOU need to take care of! You’ve been there for 18 years, time to start adding in a little more “me” time.

By: janice

janice — Fri, 15 Oct 2010 21:22:28 +0000

I have been giving my kids allowance now they are both 18 going to school and working part time.

In addition I am paying for a bus monthly bus pass, 50 cell phone minutes, and hair cuts. Wondering about the bath and beauty products that they seem to go through so quickly. Would it be wise to tell them to take those items out of the allowance or would that be something that comes under the food and drug store category for me? Have trouble with the allowance and categories this should include.

Silly really that I cannot seem to figure this out after all that life has thrown at me in the last 18 years!

By: kelly

kelly — Tue, 08 Jun 2010 11:12:29 +0000

Starting is young is certainly one of the best things I have done with my three children. I do believe that if we were given the same advice my financial career would have been a lot healthier than it was when I first started out. Teaching your children to respect and care for money is very important.

By: Karyn Hodgens

Karyn Hodgens — Wed, 05 May 2010 14:32:34 +0000

You’re absolutely right, Laurie. Just like our “regular” personalities, we all have “money” personalities. Partly a packaged deal when we’re born and partly influenced by our environment, some need to work a little harder at at things like saving and making wise investments.

But, unlike our regular personalities, as a society we don’t give much thought to our money personalities (savers, spenders, givers, penny pinchers, avoiders, worriers), which, if not recognized and “tamed” in time, could lead to problems.

The interesting thing is, if you’re paying attention, it’s easy to see these personalities start to come out in kids. The good news is, there are strategies that can be used to help steer kids in the direction of making good money choices. And, like most things, the earlier you start, the easier it is.

By: Laurie Pawlik-Kienlen

Laurie Pawlik-Kienlen — Tue, 04 May 2010 22:13:55 +0000

My grandma (who partly raised me) gave me $25 a week for an allowance, when I was 15. It seemed like a vast amount of wealth! I couldn’t believe it — and I couldn’t spend it all before the next Friday and “allowance day” rolled around!

Do you think some people are born with inherent money skills, and others need to be taught how to handle their money? I’ve always been a saver and wise investor, but don’t remember being taught it….my grandma just gave me my allowance, and I always tucked it into my savings account!

My sister, on the other hand, spent her money like tomorrow would never come…
.-= Laurie Pawlik-Kienlen´s last blog post …Pay Off Your Mortgage – 5 Ways to Make Mortgage Payments Go Away =-.

By: Karyn Hodgens

Karyn Hodgens — Mon, 03 May 2010 03:25:35 +0000

Thanks, Susan and NetSpend!

Yes, laying that financial foundation early is important. We want our kids to be prepared to handle the adult financial decisions they will be faced with on a daily basis.

Thanks for chiming in!

Karyn

By: NetSpend

NetSpend — Sun, 02 May 2010 22:06:36 +0000

Really great post – when it comes to teaching kids personal finance, the sooner the better. Another great way to do it is with prepaid cards. You can load the allowance on them and they can spend it freely, but will have to start understanding that when the money is gone, it’s gone. Also, online statements can be really helpful for your kid to see how to better manage funds.
.-= NetSpend´s last blog post blog ..Set a Budget by using a NetSpend Prepaid Credit Card =-.

By: Susan Liddy

Susan Liddy — Tue, 27 Apr 2010 19:59:36 +0000

Dang!
Sounds like I’m too old to get an allowance.

Seriously, great tips. Like the the idea of starting them at age 5 or 6, and making it half their age. And, good to know about the teen getting the job and making their own money. This good parenting will definitely prepare a future adult to properly manage their money.
.-= Susan Liddy´s last blog post blog ..SURVEY! What do you have to smile about today? =-.