Gary Poster, with essential assists from Galyn Norwood, Phiroon Phihakendr, Jose Quijada, Pavandeep Kalra. Here is an overview of the most important points of this lesson.
Allowances are the best way to teach young children financial responsibility.
Habits learned early on will form the basis for a lifetime of responsible finances. Avoid linking allowances too directly with household chores. Instead, stress that all members of the household are expected to contribute to the family by performing tasks that benefit all. When your child asks for a raise in his or her allowance, use this as an opportunity to teach economic values. Teach the importance of paying bills.