North Castle conducts regular focus groups with eight to ten teens. The information is used by the agency to refine and target their marketing ideas to be more attractive to the average teen. Still, an important part of growing up is learning how to manage money, spend wisely, and separate needs from wants. According to Mary Mohler, there's nothing wrong with giving your children an allowance and teaching them to manage their own money. But Mohler stressed the importance of setting goals with children, helping them budget their money, and teaching them to give to charity.
Children learn more from our examples than from our words.
So, if we set good examples of responsible money management, our kids are likely to develop those same skills. Mohler suggests that children should be completely responsible for their allowance and, if they spend it all at once, parents should not bail them out. Remember, the reason for giving kids an allowance is not to reward them, but to teach them about responsible money management. For the same reason, the allowance should be separate from household duties and chores. Chores are what your child does as a family member.