"Give your kids an Allowance!"

By Sidney Perez

How do our kids really learn to manage money? Most don't until they're adults and then they learn primarily as a result of their own successes and failures.
There's usually no course at school, no helpful hints on TV and observing parents can be confusing at best. Typically, parent's money management skills are often either not what we'd like them to be or our finances are so complex that how we handle our money doesn't mean much to a child.
To make matters worse, kids today have more money to spend and develop financial styles at a younger age than ever. Before you know it, kids can develop bad habits that can last a lifetime.
In fact, most parents don't deal with their kids' money management problems until their children are adults. By then, these problems can be both costly and emotionally charged. Young children provide parents the best opportunity to encourage good financial habits and avoid problems that will develop latter in life if this area is neglected.
The only way kids will learn to manage their money is through their own experience and the guidance you, as parents, may give them. In other words, kids learn from trial and error and role models just like the rest of us. And if they can't learn as children, the price of adult mistakes can be great in terms of money and relationships

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