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Ask Dave

Parenting Tips For Teaching Children About Money?

Barbara wants to start off on the right foot with paying her daughter for chores. But what is best?

QUESTION: Barbara wants to know the best way to pay her daughter commission for chores she does around the house.  When should she start teaching her 3-year-old about money?

ANSWER: You can go to 2 extremes.  You can either give your kids an allowance for doing nothing or you can turn them into a union that negotiates to get paid for every single chore.  Somewhere in the middle is best.

You have to define what the kids get paid for and what they are just expected to do as a member of the family.  Teaching them to earn money and then save, give and spend wisely creates teachable moments. 

You can usually start with children around 4 or 5 years old, but it will depend on each individual child.