How To Use Your Child's Allowance As A Tool To Teach Them To Be Money Smart

How can I use my child's allowance as a tool to teach her to be money smart?

The critical thing about an allowance is that it's not just extra money a child get on top of everything else you the parent spend on him or her. What goes along with the allowance is financial responsibilies, finacial jobs or finacial chores. So, the kids have certain responsibilities with that money. They know for a very young child they can be purchasing their own collectibles; whatever that collectible happens to be. When kids are in middle school they should be paying for their own snacks with their friends after school and their own entertainment. They shouldn't be hitting you up for twenty dollars everytime they go to the mall. That should becoming out of their allowance. A teenager could be responsible for a clothing allowance, purchasing their own clothes, so that they have a stake in making purchases. That's what the allowance is all about - that they have to make decision as to what their priorities are, because that's what adults have to do with their money.