What do you teach your children about the value of money? Do you set a good example in handling money? Do you require them to earn it? Do you hand it over to them at their request? Do you buy them things because their friends have them? Or do you explain the value of money, how you earn it and your plan to stay within your budget?
Many parents provide children with an allowance. Some parents require the completion of a chore or two, others simply hand it out each week. Whatever you do, remember you are teaching them how to value money. You impress upon them the habits that they will have throughout their lives in dealing with money. The best example they have observing your relationship with money.
When a parent shows responsibility in making purchases, doing a good job for pay, or using credit with a plan, the children will learn these habits as well. If a parent spends recklessly, uses credit cards for anything or collects a pay without doing a good job, the children will acquire these habits as well. Teach your children to keep a bank account and to save for what they want to buy. Teaching them to have a healthy relationship with money is essential to their future as responsible adults.