Mom and Dad are not an ATM MACHINE!

You’ve see it happen before, little children going up to their parents in a store asking “Mommy can I buy this”.  I am sure your children have done the same thing, all kids do.  Children look to parents for their sole source of supply.  Who else should they turn to, a complete stranger?  Of course not, children know that they can go to mommy or daddy for anything.

At an early age it seems cute but as our children get older they need to learn that money doesn’t grow on trees.  Although they have always looked to you for their sole source of supply, the supply is not limitless.  There comes a point where (as parents) we have to draw a line in the sand.  A point where we have our children take on some (if not all) of their own financial responsibilities.

Here is one way to handle this situation.  The first step is to determine when you feel your child is mature enough to start handling money.  What I mean by that is if you were to give your nine year old child $50.00 on the first of the month would they be able to budget it and make it last the entire month?  At nine years old that is probably too much to expect, but at fourteen or fifteen they are more likely to be able to handle this.

Once you feel your child is old enough to handle the financial responsibility pick a dollar amount that you are willing to give your child for the month (or the week) to spend on their daily needs.  This could be for going to the movies, school lunch, transportation to school, etc.

What you are teaching them is how to handle their own finances.  In essence you are teaching them to create and stick to a budget.  BUT don’t believe for a second that they are not going to stumble along the way.  Instead of getting mad about it use it as a teaching time with your children.  You don’t have to be all business with them, have fun and enjoy the ride.

Strategy Based Profits TIP: – As your kids fall short of money at the end of the week or month explain to them that as adults we struggle with the same things day in and day out.  They are not alone here.

Robert J. Roy
Money Man