Educating Your Child About Money.
“Teaching the child the value of money is a very important life skill,” says clinical psychologist Dr. Lee Hausner, “It's starts when the child is young enough to understand about money which is generally about 7 or 8 and they get an allowance.”
The goal is to teach your child financial responsibility early to set them up for long-term success.
“An allowance should be given in three parts. There's a part that the child can spend immediately. There's a part that you want the child to put in savings so they understand saving and delaying gratification and there's a part that I want the child to give to charity,” says Dr. Hausner, “Giving a gift card that has a limited amount of money and then letting a child go to the store and having to purchase something within the confine of a gift card is another very good technique for a younger child. As a child gets older, in high school, I like a child a clothing allowance so they learn how to budget a fixed amount of money. At that point, they can learn to have a checking account. They ... Read more