So, you’re tired of little Johnny asking for your last dollar to buy a video game that he just has to have, or young Missy digging through your purse for “mall money.” The relationship your kids have with money doesn’t have to put you in the poor house. Here are some things you can do to teach your money-grubbing little darlings the value of a dollar.
Give them an allowance—and stick to it. Agree on a reasonable weekly or monthly amount and then let your child know that he or she must stay within that allowance. Creating this habit now will form the basis for them to be responsible about their finances as adults.
Don’t link allowances to the completion of household chores. Let kids know they are expected help out—without expecting pay.
Let them see you paying the bills. Expose them to the fact that with living comes bills. Encourage them to ask you questions about the bill-paying process, writing checks, etc.
Train your teens about credit. Before they go off to college or on their own, teach your teenagers that credit is a privilege, not a right. Discuss the consequences of abusing credit, such as damaging their credit rating, interests rates and getting into debt.