What is better in regards to kids and money, a little spending money all the time or nothing.?

Question

I was watching a show where a woman spent money all the time. The reason for that was given by the expert was that while growing up she was always told there isn't money for that so now she is making up for going without at a child.
Lately I have been telling my children that, "We have better uses for our money." whenever they want some little trinket at the store. So what is the answer for keeping our kids from going spend crazy when they get older?

Answer 1

I think it is important that children learn the value of money.

I think it's a good idea to have the kids do chores and give them a small allowance each week for the work they have done. Then, it's their choice whether to go to the dollar store and blow the money each week on a small toy, or save it for a month or two to purchase something they really want. It's a good way to teach responsibility, the value of money, the importance of work, etc.

I was raised this way, and I got $2.00 a week for doing chores. I can remember as a 8 year old, having my parents put a Cabbage Patch doll in layaway for me, and I paid the $2.00 per week for the doll in layaway. Believe me, I appreciated the doll much more, as I had to wait several weeks to get her, plus I was motivated to do my chores because I had a "bill" to pay each week.

Answer 2

My daughter has to earn her 'little trinkets' or anything she wants at the store if it is not a holiday or something. Even though she is 3, we made her a star chart and if she gets all of her stars (or, like, 80% of them) for a whole week then she can pick a toy or activity under $5. Sometimes she saves up every week so that in 4weeks she can buy something worth $20.
She knows that she can't have the stuff at the store if it isn't the end of the week yet, and if there is something she really wants, I will let her know how many weeks it will take to earn it.

Recently she wanted that butterscotch pony at walmart that's about $300! When I told her it would take over a year to earn it, she said she didn't want it anymore and settled for a my little pony. She wondered why it cost so much. I wonder who would indulge in such a thing!

Answer 3

I say the best way is to make them earn it, shows them how fast money goes, then when they want something at the store, make them use there own money, make out a chore list for each day and at the end of the week pay them a dollar for each year of age is good or less if you can't afford that, and then when they want something they don't have to have like a little trinket at the store make them use there own money, that way there learning how hard it is to earn money and how fast it goes, thats what we do with our kids and funny after awhile they'll see something they want and there like man thats a lot of my money i'll wait, i think its great for them to learn how to save and budget, no matter what age, mine are four and eight and already have the hang of it, just a suggestion...

Answer 4

You manage "their" money when they're young... say through age 10. the next few years, you work with them to manage their own money... sort of handing over the reins. Then, at age 12, you work with them to establish a budget... how much do they need for school lunches, gifts for friend's birthdays, etc... and you give them an appropriate allowance so that they can have a little to spend, and a lot to save for those once-in-awhile expenses. (of course, they always spend more than they should at first... do NOT cave in and give them more money... they won't learn that way!) By the time they get into high school and are working, they'll have the budgeting/saving thing covered...

Answer 5

Kids don't know the meaning and value of money unless they learn it first hand. I grew up with chores that paid small amounts of money, and I use the same method with my kids.

If a kid gets $5 for feeding the dogs for a week, or $1 for taking out the trash, then they understand that a $50 item will cost them several week's work. They associate spending with earning, and learn that earning is an essential part of spending. That's something you can't teach them unless they experience it themselves. Make sure to budget some small amount every month for kids that want to work and earn money from you.

So, instead of saying "we have better uses for our money", you can say "if you think it's worth earning the money with chores, then you can buy whatever you want."

Answer 6

Tell them that they have to earn the money. Get them to do chores around the house or the elderly neighbor's house so they can learn how to earn the money. Also, teach them how to save and invest their money at an early age. If they don’t learn when they are young that money doesn’t come from trees (even if you’re rich) or they don't know financial management at an early age, they’re going to go in debt when they get older. Many young adults after college go to instant debt because they didn’t learn financial management at a young age which could effect them from buying a house, car, or getting certain jobs if they're heavily in debt.

Answer 7

I would give them regular spending money, but the same amount as other kids at their school. Ask other parents. The kids will obviously exagerate what other kids get. Ignore any extreme high/low figures.

Then you can sit your kids down and teach them to consider slowly what they spend their money on. You can tell them 'Don;t just spend it on the first thing that comes to mind. Think about how you get the most enjoyment from the same amount of money and also about saving up for things. You can teach them the bad effects of adults living on credit and paying mega-mortgages and the affect of advertising on kids, such as during cartoon shows. Also, they don't need expesnive designer brands of everything. Does adding a 'Nike swoosh' to a pair of trainers really triple its value?

You can even talk to them explicitly about how kids spending money and habits as children affects how they behave as adults. Its not rocket science. They should understand it.

That all sounds a bit adult. You can tailor it to how old they are and what they'll understand.

Depending on your own beliefs, they might earn extra money for chores, such as cleaning the car.

Answer 8

Your question goes from one extreme to the other, but the answer actually lies somewhere in between. Do your children receive an allowance? You don't say how old they are, but you can begin teaching them about money by teaching them to "save some, spend some, give some" - not necessarily in that order. Teach them the value of a dollar by teaching them to be responsible with money - they will most likely follow your example. There's nothing wrong with treating ourselves to a little something nice once in awhile, but teach them that it's important to have a proper BALANCE in everything in their lives. They don't NEED to have something every time you go to the store. (I've been teaching this to my granddaughter, but it's sometimes hard to enforce if "pop-pop" goes to the store with us! HE needs to learn that too!) Teach them "you reap what you sow" by explaining to them the consequences of financial decisions - good and bad. (i.e. if you don't pay the bills, you don't have utilities, or possibly a place to live. If you put some money into savings, it earns interest. etc...) Teach them to share their blessings / help others by putting money into the salvation army kettles or donating to charity.

Answer 9

We give our children a weekly allowance....They also have simple chores around the house.....With their allowance we encourage them to tithe at church....so they give 10% of their allowance back to God....They put 25% into savings and then they keep the rest, they can spend it or save it for something special that they want.....I am not saying we don't buy them what they need.....we are talking what would be seen as luxeries....candy......toys (when not a birthday or Christmas)......they value a $1 so much more and they value the things they buy....my girls are 9, 6, and 3

Answer 10

Depends on the age of the kid. As they get older they should have some spending money to learn how to use it. Spending money from parents should stop as soon as the kid gets a job though and even for younger kids they should earn it doing chores. Work=Money and when you have to work for it, you tend to be more responsible about it.