 Allowances: Dollars and Sense
Feature: Do's and Don'ts for Parents
All these examples are taken from the book, Allowances:
Dollars and Sense, by Paul W. Lermitte.
DO: Set
Limits
Teaching kids to be independent and smart doesn't mean you're not the
parent. Setting reasonable boundaries allows kids to experience real
freedom within those boundaries.
DO: Share
Purchases
Check out some of the ideas for shared purchases in the Teenzone Feature
Page. Helping kids with a major purchase can be a real win/win experience.
DO: Take
them to the Bank to Start Saving
Opening a bank account is a big event in a child's life. Your child
may not feel that he or she can initiate this. Go ahead and take the
lead - they'll catch on once you get them started.
DO: Give
a Set Amount
An allowance shouldn't be at the whim of the parent. Make it a consistent
amount each and every week. It's a good idea to hand it over at the
same time every week. Make it Sunday night or Monday morning. How much
should you give? Try about 50 cents a week for each year of age.
DO: Let
Them Learn
Allow your child to learn to be a good consumer by spending up to 75%
of their allowance. That means it is their choice how to spend it. Plan
ahead to give them that freedom, and let them learn!
DO: Loan
Your Child Money
Yes, it's okay. You can lend your child money, but there are several
important safety checks you need to put in place first. Read Chapter
7 of Allowances: Dollars and Sense
to discover how to make loaning your kids money a positive experience
for both of you.
DON'T:
Give More Money Than the Set
Allowance
Learning to wait and have patience will allow your child to laugh all
the way to the bank! In some cases you may choose to lend them money,
but giving it away teaches them nothing.
DON'T:
Give Your Child a Bank Debit
Card
Don't give your child his or her own debit card until you already
have peace of mind that they have excellent money habits. This may occur
as early as the age of 11 or 12.
DON'T:
Let Your Child Save Nothing
Set some ground rules about how your kids handle money. Sure,
they can spend that 75% of their allowance, but you are going to institute
a policy of positive money management. A lifetime habit of saving money
will give them financial security. To download forms
that help your family get control of your money habits click
here.
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contents © 1999 by Paul W. Lermitte
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