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Old 03-22-2013, 10:39 AM   #19
Derek Sutton
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Originally Posted by Sliver View Post
Now as a parent, I really want to be able to help my kids buy their first house, pay for their schooling, pay so they can travel more than I did, etc. So I'm kind of doing a 180 now that my kids are getting older - I used to kind of think adult children who accepted parental financial help to holiday, buy cars, etc. weren't "real men" or were "spoiled" (and I still do to a degree in some situations), but I think there must be a happy medium where kids and young adults can earn a sense of self worth, pride of ownership, etc. by doing things on their own, while still receiving some help to do things that they wouldn't be able to afford otherwise.

Anyway, I'm in the process of reworking my philosophy on the whole thing. If anybody wants to discuss this, let's do it. Would love to hear other thoughts on the subject from kids and from parents.
I think you need to start early, reasonable chores and an allowance. A portion of their allowance goes into savings, a portion into education fund and the rest is theirs. Make them physicaly put the money into separate accounts, or online transfer it anywyas. Say $80 a week, $20 into savings, $20 into education and $40 for spending. Just thorwing some numbers out there, I don't know what it costs to be a kid these days but I learned so much from being my own banker since I was 10 yrs old or so. This way you are really helping out long term in that they will have money saved that they earned, money to spend as they see fit and a basic understanding of how to save money and to not spend every last cent like most kids do when they have a $20 bill.

I have heard some cases where parents give a huge allowance and then take all the deductions off of it such as tax, utillities, rent, transportation etc... (you know like real life)and leave the kids with about $20 for the week and they just let them blow $20 on any old thing. I believe that does not teach them to save money or pay themselves first, just that you have $20 to get you through to next week

I don't know how old your children are may its a bit too late for this.
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Last edited by Derek Sutton; 03-22-2013 at 10:42 AM.
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