and then not having any when they need it — to learn about money.
In general, people best learn to save only after they’ve learned how
to be broke.
Rule Four: As long as they’re not engaged in illegal activity,
allow children to spend, save, or waste the money any way they
see fit. They can use it to hire others to do their chores. They can
even hire a babysitter if they don’t want to go somewhere with the
family. But there’s a catch: When it’s gone, it’s gone. No more
allowance until the next week’s envelope.Jim’s son, Charlie, learned a powerful lesson in money management
the very first week he got on the allowance payroll. Their family visited a
carnival, and the midway barkers had their way with the boy. He came
home flat broke.
“Dad, what am I going to do for lunch?” Charlie said when reality
struck him on Monday morning.
“Go over to your pay envelope and get your lunch money out,” Jim
replied.
“But it’s all gone,” Charlie said.
“Oh, no, that’s really too bad. What are you going to do?” he said.
“I don’t know,” Charlie said. “Can I get some food out of the
refrigerator and make a lunch?”
“Sure, if you can afford to pay for it,” Jim said. “Mom and I have
already paid for lunches once, and we don’t want to pay for them again.”
It was a tough week for Charlie. But surviving for five days on two
meals a day (Jim and Shirley made sure they were good ones) taught him
a big lesson in money management.
There will be times, however, when kids are more persistent — and
more psychologically devious — than Charlie. When they blow their
bankroll early and shuffle up to us begging for more money before the
appointed allowance time, we must become as tight as a Depression-era
banker. Sure, there will be more money — on the next allowance day.
Even when our kids push the powerful guilt button, we must make sure