Parenting children of any age has its ups and downs, and part of the job is navigating a variety of conflicts as children grow and mature. One of the most common conflicts are those related to money.
Children often ask their parents for money to go out and do things. As the old saying goes, money doesn’t grow on trees, so parents must say “no” sometimes. These situations can be opportunities to teach kids about money and financial responsibility.
Help kids be specific about their savings goals. It is important to not just set goals, but to break them down into smaller steps and clearly establish where the money will be saved—a piggy bank, a savings account, or even a debit card for kids.
Allowances are an important way for parents to teach their kids not only how to manage their money but also the value of working to earn that money. Three in 4 parents pay an allowance to their children and about 1 in 3 set this payment somewhere between $11 to $20 per week, according to Investopedia.
Nearly half of parents in the LendingTree survey said their child used their credit or debit card at least once without permission. With the average amount spent coming in at $534, it’s no surprise this is one of the top financial conflicts between kids and parents.
Teaching children to regulate their emotions and respond appropriately when they don’t get their way is a common challenge for parents. Cleveland Clinic pediatrician Edward Gaydos recommends a number of strategies parents can use to help increase their children’s compliance and avoid unwanted behavioral issues.