As a retired school teacher, I saw many teenagers who had no idea of the value of money. They felt they should be given whatever they wanted. They also had trouble taking responsibility.
Learning responsibility and money management must begin at home. Small children should be given small tasks which need to be done daily. As they get older, the tasks become chores for which they should receive an allowance. As with any other job, if the work is not completed, they should not receive their pay.
As soon as the child gets a job, a portion of that salary should be paid to the parents as "rent." The responsibility of paying rent is a very important one. As a parent, we don't want to take the money away from our children, but you can "take it without taking it." Don't let your child know you have done this, but set up a savings account in their name. Put their "rent" money into this savings account.
If you collect the rent regularly, this savings account can become a down payment on a car, a college graduation gift, a wedding present. Whatever the occasion, the lessons of responsibility and saving money have both been taught in a way that paid off.
By Clynn from Inglis, FL
Excellent tip, but works better when parents are responsible themselves, and not in dire financial straits for one reason or another. For those of religious bent, tithing is another responsible move, and supports the family's church, synagog or mosque.
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