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.
Sometimes, the things children want to spend their money on—not to mention the cost of these items—are not aligned with parental expectations for smart spending. Parents can work to prevent arguments about their children’s spending habits by teaching money-saving strategies from a young age.
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.