Giving an allowance is just the first step

Parents should give their children an allowance

In discussing this point the Money Mindset Mob each had a different opinion.

Here is my ‘money advice‘ for parents:

One of the scariest questions I can ask a parent is: When your child reaches the age you are now, would you be happy if they had the same level of financial security and understanding as you do right now?

The response is usually a resounding “Goodness NO!”, their eyes wide in horror as they realise they are ultimately responsible for teaching their kids about money. Part of the reaction is based in fear, because lots of adults are not 100% comfortable with their own finances, let alone teaching someone else!

If you’re reading this wondering how on earth you are going to ensure your children grow up with constructive money habits, please don’t fret. Consider these key points:

1. Money isn’t worth fighting about. It’s just a tool which can help increase your options in life.
2. Money needn’t be a taboo subject. Talk about it. Why not set a joint family project to learn more about money, to make the most of your unique Money Mindset, to help each other set and achieve financial goals?
3. “True wealth is what’s left when all the money is gone.” Money acts as an amplifier for our character - if your child is considerate and ambitious with no money then they are likely to be equally so with lots of money. Conversely, if they’re a little snot when they’re broke, they will probably be a bigger snot when they have money… so do focus on the important stuff.

Deciding whether or not to give your child a regular allowance is just the first step of a much longer journey to financial literacy and independence.

Travel well.

Stuart Fleming

Creator of the Money Mindset Mob.

Enthusiastic believer in independent teens.

Tags: allowance, parents and money, Stuart Fleming