Up the ante as they get older. To avoid bickering, give the same amount to kids less than two years apart in age. In our survey, kids who controlled their money knew more about the subject than kids who had no control. Five dollars blown on a shoddy toy can be money well spent on consumer education. Part of the lesson here is that resources are limited.
Kids learn by facing the consequences of their actions.
That defeats the purpose. Use other forms of discipline. Your kids should be able to depend on getting a certain amount each week, like a salary. In most states, whether to teach consumer and personal finance is decided by school districts, schools and teachers. The results range from entire courses to just a few hours in economics or math class.