One of the greatest gifts we give our children is preparing them for what is ahead in the adult world. There are several ways we can accomplish this without creating the burden of adult problems on the innocence and purity of children. One of the more difficult subjects to discuss without burdening our children is the subject of money and what to do with it.
Greg Vaughn, a CPA at Barlow Walker in Brandon, MS, said something very important about saving money no matter your age. He told me, “If you can measure it, you can manage it.” We must help our children learn to “compartmentalize” and manage money. The immediate consequence of not teaching our children to manage their money is a habit that forms where our children regard their allowance as money they can spend on things like video games, toys, junk food, etc. It is not a realistic view on money. The delayed consequence of not teaching our children to manage their money is rather severe. As adults, if they treat their paychecks the way they treated their allowances they will be in real trouble.