Guest Post: How To Teach Financial Responsibility Without Giving An Allowance

Today I have a fantastic guest post for you sent in by Kimberley Laws. I always enjoy reading different opinions on whether or not to give an allowance and if not, then alternative ways to teach your child about financial responsibility. Enjoy Kimberley’s post!

Cheers…Amanda van der Gulik…Excited Life Enthusiast! ;o)

P.S. Don’t forget to grab your FREE copy of “Allowance Secrets: To Give or Not to Give?”

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How To Teach Financial Responsibility Without Giving An Allowance

How To Teach Financial Responsibility Without Giving An Allowance

The greatest gifts that we can give our children are the ones that prepare them for the real world, and building a happy and successful life within it. One of these valuable gifts is imparting the knowledge required to become financially responsible.

Finances, however, can be a dry topic and when kids are bored, their ears slam shut. So, how can you teach your children about the value of a dollar without lulling them to sleep?

Here are a few ways to teach financial responsibility that will keep your children’s eyes wide open and ears switched on.

1. Take them to the bank

From an early age, bring your child with you when you do the family banking. This will get them used to money and banking concepts. When they are old enough, take them to open their first savings account. Not only will this make them feel grown up–which will definitely capture their attention–but this will also provide them with a vehicle through which to save money and learn about interest.

You may also wish to introduce them to savings bonds as a way to teach them how to build up a nest egg, accumulate interest, and make long-term financial goals.

Many financial institutions also offer seminars for kids. This will enable them to talk to a pro and interact and learn from other children.

2. Play games

For many of us, our first exposure to the world of high finances was acting as the “banker” in board games like Monopoly, Payday, or The Game of Life. As our “shoe” or car full of children made its way around the board, we watched our stash of dough dwindle as the bills for new braces, or having our railroads repaired came in. It may have been play money, but spending it felt very much like emptying out our real life wallets.

There are also online tools that make fiscal responsibility fun. Visit the site operated by the U.S. mint, or Fat Cat. Your credit union may also have games or coloring pages at on their website that you can use.

3. Set goals

Success in the real world means setting goals and taking steps to achieve them. It is important that your children are presented with opportunities to do the same.

If your child wants the latest video game, rather than reaching into your pocketbook, have them save up for it. Let them take on a paper route, shovel driveways, or, if they’re old enough, get a part time job to earn their own money to make their purchase. This teaches them to set and work towards a goal, and to manage delayed gratification.

4. Teach them about charity

It is important for children to understand that financial disparity exists and that part of being a productive member of society involves helping the less fortunate. Bring your child on altruistic endeavors like feeding the poor, canvassing for a charity, taking food to the food bank, helping with collection duties at church, or working at an animal shelter.

Encourage them to give a portion of their earnings to charity. And set an example.

5. Take them shopping

For many children, their first exposure to shopping is at the grocery store. Take them along and explain your method. Show them how to plan budget-conscious meals, create a shopping list, check flyers for deals, clip coupons, and make price-per-unit comparisons. And teach them the value of never going grocery shopping when you’re hungry!

6. Budget

One of the trickiest financial concepts to master and adhere to is setting a budget. One way to do this is to have your child shop for their “back to school” wardrobe, while staying within in specific dollar amount. Your child will quickly learn to keep an eye on price tags instead of brand names, and just how quickly expenses can add up.

Using a little creativity and some real life experiences can impart tremendous amounts of financial wisdom to your kids. Have fun and make the most of every learning opportunity that arises. Your child will thank you later.

What techniques did you use to impart financial knowledge to your children?

Kimberley Laws is a freelance writer and avid blogger. She has written on a vast array of topics including luxury travel destinations, online reputation management, and frugal fashions. You can follow her at The Embiggens Project.

Photo courtesy of photos.com


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