Episode 6: Why You Should Never Give Your Kids an Allowance
Growing up, your parents probably gave you an allowance each week. Perhaps if you cleaned your room or washed the dishes every night, you’d earn five or ten bucks. On today’s episode, I want to share with you why you should not give your kids an allowance, what you should be doing instead in order to truly prepare them for their future, and how you can begin teaching them financial literacy at a very early age.
There’s huge benefits to helping your child get set up financially earlier, rather than later.
In This Episode of Real Money Talks:
- Teaching your kids that certain things are worth more than others.
- How to figure out – together – the tasks they can do, the things they want to do, and the things you need done.
- Creating a “contract” or agreement with your child.
- Giving incentives or bonuses.
- Developing an insurance policy.
- Teaching older children to leverage the time of others.
- Creating forecasts and budgets with your child.
Loral’s 6 Steps to Teaching Your Child Financial Literacy:
- Come up with a list.
- Put a price on each task.
- Put an agreement into place.
- Have regular “meetings.”
- Add insurance.
- Add leverage.
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Loral Langemeier is on a mission – to educate and empower the Loral’s Real Money Talks community on how to have those important money talks that are straight, to the point, and can be applied to every aspect of your life. So, tune in every Monday, Wednesday, and Friday on iTunes to learn, ask Loral a question, and create your path to financial freedom! Don’t forget to leave a review and grab your free gifts on AskLoral.com!