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Introduction

Everyone has attitudes and feelings about money which are based upon observations and experiences of childhood. How money was handled in a your family when you were a child will greatly affect how you handle money with your children. Because of these different attitudes about money, conflicts often arise between parents when money topics such as allowances are discussed. It is very important for parents to use a consistent approach to giving their children money and to teaching them about earning, spending, sharing, saving, and borrowing money.

While this publication explains the ways children receive money, more general information is presented in Teaching Children Money Habits For Life listed in the reference section.

There is no right or wrong way to provide children with money. Each method has advantages and disadvantages. Because each family's financial situation is different, choosing a method or combination of methods is a family decision. This publication talks about the pros and cons of each method and ways to make any method work for your family.