The next generation of kids will have more financial stress than their parents or grandparents, so it's important for children to learn the value of a dollar -- and parents can instill the best budgeting lessons through a set amount of cash each week.
Experts agree that giving your kids allowance is essential to teaching them about financial responsibility, but instilling proper budgeting in children only works when the parents agree to a specific allowance each week -- and a specific set of rules.
"Allowance only works when your kid has to take that sum of money and then manage it,"
Jean Chatzky, a financial journalist, said on the
Today show on Oct. 11, and added that throwing in a few dollars here and there for them is more harmful than helpful. According to a national survey for the American Institute of CPAs, 54% of parents pay their kids a weekly allowance starting at age 8 or younger, which Jean agrees is great practice -- the earlier children learn about financial responsibility, the better. But the old method of having kids work for their allowance through chores is not always best, she said, because children should not be motivated to help out around the house with money. So how much should
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