Part II: Teaching your children to be financially wise

I could not imagine turning my back on one of my children if they were deep in debt and needed my help. By teaching your children to make sound decisions can save you from being financially drained by an adult child; call it financial self-defense.

2. Making wise decisions.
One trick a friend of mine used, especially when going on vacation or to an amusement park, was to give each of her daughters their own spending money. The money was theirs to do with as they pleased which helped make the outing enjoyable for everyone involved. She was not nagged and harassed for trinkets and they were content knowing they could buy whatever they could afford with their own money.
She found this to be so successful; she began using this trick with her oldest grand child when he was about 6 years old. This tradition has continued with each additional grand child and has produced the same successful results.
As your children get older, you can open a savings or checking account in their name and give them a debit card. Each month deposit a set amount into their account for pocket money, school lunches, entertainment, etc. In their early teens a clothing allowance can be added. In most cases, if they spend the money before the month is up, they will not come to you asking for additional funds. If they do you will need to be firm; replenishing their account will only teach them to be financially irresponsibility.

Watch for part III coming soon.

Denise Wing, C.E.O.
Certified Mortgage Lender
Academy National Mortgage Corporation
303-987-0622