Do your kids beg, plead and whine to get what they want, when they want it? Although it's not easy teaching kids the value of a dime, Jean believes it's a parent's responsibility to instill good money habits in their children that will last a lifetime. Whether the money is earned by doing chores or doled out at a parent's discretion, Jean suggests an allowance. It can be a powerful tool to teach kids about money!
Jean is joined by psychologist Caryn Boxer, co-creator of The LearningCents Bank, an educational toy that helps empower children to make good choices with their money. Caryn says The LearningCents Bank teaches kids to divide their allowance into three categories:
- Money to spend
- Money to save
- Money to give to charity
Why these categories? Caryn says kids learn the importance of waiting to buy things they need and want, and the value of delayed gratification.
Also joining the program is Money
magazine's Stephen Gandel, who says saving is a behavior best learned by doing. To help children grow up to be smart about money, Stephen says parents should begin talking to them at an early age about money and saving. Stephen also says parents should encourage kids to earn their own allowance money and to set goals for themselves.