Think you’re setting your kids up for a bright financial future by putting off allowance until they’re older, linking it to chores and starting them out at a low dollar amount?
Doh! Turns out you’ve got it all wrong.
The data is in, the research has been tabulated, and the book has been written.
In a truly great article about the when, why and how much of allowance, Ron Lieber discusses how avoiding talking about money with our kids can leave them at a distinct financial disadvantage.
Here’s the article in a nutshell (even so, you should still read the entire piece here.)
“Allowance amounts can vary, but here’s the big idea: Give your kids just enough so that they can get some of what they want but not so much that they don’t have to make a lot of difficult trade-offs. Let them own those, so they know what it’s like to make financial decisions that resemble grown-up ones.”
Want to increase their fiscal literacy even more? Our all-time favorite finance app for kids 6 and up is Motion Math: Pizza!