• Mindy Wright

    Only thing I would encourage parents to do differently is to give kids “Commissions” instead of “Allowances.” We do not earn an “allowance” when we work as adults. We are all on commission! We do the work, we get paid. We don’t do the work – we get fired and don’t receive pay (our commissions.) That is what we have done with our kids – if they do their work or chores, then they get paid – if they don’t, we don’t make an “allowance” for them. :)

    • http://www.moneycrashers.com mattbreed

      I know that if everything I was supposed to do was not done, I did not see a DIME!

  • http://change-is-possible.net Heather

    Good article, but I especially love the second paragraph! We rarely give kids enough credit for what they see, hear, absorb, and understand.

  • http://www.compoundingreturns.blogspot.com Pat S.

    I heard an interesting suggestion recently. When your kids give you a list for the holidays, look at the companies that manufacture the gifts, and consider buying a share of stock in addition to the toy itself. A great way to get kids interested in finance and have them associate their toys with the great companies that manufacture them.

    • http://www.moneycrashers.com mattbreed

      Very interesting…..

      I’m not so sure I’d be up for investing in every company. But I could definitely jump on board for this one.

  • Shan

    Good, down-to-earth article. Allowance is great idea, it is the only way kids learn to make their own mistakes, and learn from their mistakes. But I particularly like number 3. Waiting for an year for those electronic gadgets may seem tough, but it is definitely a lesson in patience, as you say, as well as provides a practical benefit of having an upgraded version next year.

    • http://www.moneycrashers.com mattbreed

      Absolutely. I’m just glad that I have inherited that practice. There’s no telling how much money I have saved in electronics by not being an “early adopter”…But sometimes it is hard!

  • http://www.facebook.com/profile.php?id=1096789414 Kristen Nicholson

    Great article! I would add one thing that we actively try to teach our children, and that is the power of giving. I think children are naturally compassionate, and I try to show them how giving of time as well as money benefits both parties. I think is working, because both of my kids give out of their commissions on their own, and like to choose different places based on their own interests.

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