Allowance for Money Management Skills: Help your Kids Tomorrow by Teaching Them About Money Today

Can you remember what it was like to be a kid andClothes" requiring a lot of supplies. If an instructor
really, really want something? To feel like all your futureneeded a box of paper clips or a lemon, they came to
happiness hinged on your ability to get your hands onme so that I could check through their budget to see if
that one item, be it a pony, a bicycle or a comic book?they had enough money to make the purchase. If they
To look forward to the next gift-giving holiday withdid, I put their request on the shopping list for my staff
hope and worry? To empty your piggy bank, count,to buy. There were a lot of boxes of paper clips and a
recount and calculate how many more monthslot of lemons... And rocket engines and pink lace and
allowance you still needed? Of course you can. Andwhiffle ball bats and clown noses and frozen turkeys.
you can probably remember exactly what it was thatAnd then there were the bogus requests. One of my
you were saving up for. For me, it was a horse. Andfavorites was a requisition for liquid nitrogen and no,
I'm certain that you can remember whether or not youthat wasn't a joke; someone was really expecting me
ever managed to get it. Me? I didn't.to get it for their class. But more frequently the bogus
But no matter what the details of your memories,requests came from instructors (all college students)
happy or sad, you learned something from them. In awho obviously never had an allowance as a child and
nutshell, you learned about money -- what it can andweren't paying for their tuition, meal plan, books or
can't buy, how it doesn't grow on trees, and why youtoothpaste. Once an architecture instructor asked me
need to be careful about when and where you spendto get something like $75 worth of foam board for a
it. Simple lessons learned in a simple way, at a simpleone time activity when he only had a budget of $100
time in life.for the entire 6 weeks! I remember fighting with him,
Sometimes I wonder if the emotions people attach totrying to convince him that even though using plain tag
their allowance-related memories aren't drowning outboard wouldn't work quite as well for the activity it
the lessons. So often what we remember most is thewas still better than having no money or supplies left
disappointment of unfulfilled dreams, or the weeks,for the rest of the summer. Not long after, my staff
months or years we spent feeling like have-nots.and I adopted the Rolling Stones' "You Can't Always
These negative feelings tempt us to forget theGet What You Want" as our official office theme
valuable lessons connected to them, and it seems tosong.
me like too many people are giving in to theirToo many of the kids attending the summer program
temptations, turning a blind eye to the lessons theywere a kind of spoilt I could never have imagined. They
once knew, and vowing that their children will neverwould roll in on the first day with an entire set of
want for anything.authentic Louis Vuitton luggage and turn their noses up
Not all life's lessons are pleasant to learn, but thatat the college dorm rooms they were expected to
doesn't change the fact that it's still better to livesleep in, leading me to wonder how they were going
through them when you've still got time to learn fromto get through the summer. The thing about kids is that
them. Not getting that horse as a kid has, in the longthey're very good at adapting. The first few days
run, made me a lot happier than I would have been ifwere always tough, but most of them made it through
my parents had spent way beyond their means tojust fine without their Starbucks, cell phones or favorite
see my dream come true. For one thing, ourevening meal. Yet I pale to think how quickly these
already-tight family budget would have snapped andsame kids adapted right back to their old lifestyles
I'm sure my parents would have snapped too. Iupon returning home.
wouldn't have learned how to save because I wouldn'tSo the moral of the story is this: allowance is good, not
have had to pull $8 from my piggy bank -- two weeksbad! Remember the lessons you learned from it and if
allowance -- for each horseback riding lesson. Later,you have kids of your own, do them the same favor
when I was big enough, I'd learn a little bit more aboutyour parents did you and be tough about allowance.
work by helping out at the horse farm in exchange forAs soon as your children are mature enough to
free lessons. And in the end, after years of working onunderstand the cause and effect relationships of
the farm and riding, I realised that horses live longermoney (probably sometime between the ages of 8
than my dream was going to and that I'd been havingand 10), set a weekly amount, clear requirements for
the same experience, or maybe even a better one,"earning" the allowance, and boundaries about what
than my horse-owning friends who were now stuckkinds of things your children are expected to buy for
with a very expensive pet they couldn't take to collegethemselves. And then, stick to those boundaries.
with them.This is the hard part. For example, if your son is saving
Two summer camp experiences stick out in my mind.up for something he will probably have to give up other
The first was when I was about 10 years old, at a daythings he wants; you need to be willing to watch him
camp for Girl Scouts. I remember explaining thego without. Don't "reward" him by giving him extra
agreement my parents and I had about my horsebackmoney or buying him the things he is giving up. To do
riding lessons to an inquisitive camp counselor. Actually,so would be to completely undermine the lessons of
I think it was the camp director. She was amazed thatallowance. He is supposed to realise that if he spends
I was willing to forfeit all my allowance money (and allall his allowance on a pair of fancy sneakers, he won't
the candy, toys and whatever else kids spend theirhave any money left to go to the movies that
money on) for one half hour of horseback riding twiceweekend and show off those snazzy new shoes.
a month. I was amazed that she was so amazed,Instead, reward his good budgeting behavior by giving
amazed enough that I still remember the conversation. Ihim additional privileges and freedoms regarding his
thought that was just the way things were; everyonemoney (maybe let him buy those concert tickets, etc.)
had to prioritize their desires/needs and makeBy doing so you also give him additional opportunities
sacrifices You couldn't have everything.to learn how to be responsible with his money.
In retrospect, I still think that's the way things are -- weIt won't be easy, especially if your family's finances
do have to prioritize and make sacrifices - but I'm a lotallow room for occasional splurges, but when you're
less surprised that my camp director was so shockedtempted to stray from your own rules, just remember,
that I, at the age of 10, seemed to know this. Tenyou're probably in this position because you learned
years later, I would be the camp employee shockedabout money as a kid. And if you don't find yourself
by what kids do and don't know about money. I spentrolling in extra cash, then setting a budget for your kids
a few summers working at an academic summer(and for yourself regarding what you'll spend on luxury
program, a cross between a summer school and aitems for them) can help you balance your own
summer camp. I was the "Supply Office" manager,household budget and adopt frugality as an entire
responsible for the program's entire inventory andfamily commitment.
purchasing of classroom supplies. I know that doesn'tI wasn't a genius at age 10 (some things never
sound like much, but the program was home to 700change) just because I knew that I needed to prioritize
kids for six straight weeks and the number of classesmy wants and needs; I was just lucky -- lucky that my
was somewhere around 300, each with its ownparents had stood firm and taught me the lessons of
budget, and many with titles like "Cooking withallowance.
Chemistry" or "Fashion Design -- Make Your Own