How to Give Your Children Money Without Spoiling Them
In this newsletter, we'll explore how to handle requests for money from your child in a way that promotes financial responsibility and independence.
Meet Sarah, a mother of two who was struggling with how to handle requests for money from her 8-year-old daughter. Her daughter, Emma, had been asking for more and more money lately, for things like toys and treats at the store. Sarah found herself constantly giving in to her daughter's requests, but she worried that she was spoiling her and not teaching her about the value of money.
One day, Sarah decided to have a conversation with Emma about money. She explained that money is a limited resource, and that there are many things that they need to spend it on, like food, housing, and other necessities. She also talked to Emma about the importance of saving money for the future, and how it's important to think carefully about how to spend money.
After their conversation, Sarah and Emma came up with a plan for handling requests for money. Emma would receive a small weekly allowance, which she could use to buy the things she wanted, within reason. Sarah also set up a system where Emma could earn extra money by doing chores around the house.
The results were remarkable. Emma learned the value of money and became more thoughtful about how she spent it. She also became more responsible and independent, as she learned to manage her own money.
By having open and honest conversations about money and setting up a system for handling requests for money, you can help your child develop good financial habits that will last a lifetime. Remember, the key is to strike a balance between meeting your child's needs and wants, without spoiling them or teaching them to be entitled.
Send us any money questions or stories that you have, and we’ll feature you. If you found Sarah’s story helpful, share it with other parents.