I have been asked to contribute to a new book focused on the question “Should Kids Be Given Pocket Money?”

Here is the start of my chapter as a taste.  Watch out for more soon.

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I remember a very scary day in my life as a parent.  No, my son was not abducted.  And no, my daughter did not come home with a tattoo, (thank heavens as she is only eight!)  What I am about to confess to you is much, much worse.

How many of you have been guilty of telling your children off for some unacceptable behavior only to realize that they have just mimicked something you usually do?

One day as our son Jackson was having a difficult time controlling his behavior he lashed out and said something in retaliation to our attempts to guide his misbehavior.  You know, I can’t remember the exact words he used but at the time Kathy and I both looked at each other with non-verbal communication that a Mom and Dad perfect over the years.  The message was clear; “He learnt that from you!”  (Emphasis intended).  The only problem was we were both aiming the comment at each other.  If you would stop laughing at us for a minute, here’s the real key point.  My son had used behavior to retaliate that he had learned from his parents.  And it wasn’t something we were happy about!  Boy did he get a telling off.

Isn’t that bad?  Telling your children off for doing something that you do?  I think so.

As a parent one of the scariest things I have had to come to terms with is that my children are being shaped by my attitudes and actions.  And this is so very true when it comes to money.

When I teach this in my Wisemoney seminars you can see the light come on like a lighthouse for some.  They sit back as though I have just slapped them across the face as they suddenly replay a thousand conversations in their mind.  “Oh my gosh” many think as they process the enormous impact they are having on the financial values their children are developing.

It is with this principle forward-most in your mind that I would like to talk about Allowances.  Why is this?  Well, whatever pocket money rules you decide to implement as a parent will have a significant impact on the development of your child’s attitudes towards money, both current and future.  With that in mind, let’s get into it.

There are two areas that you are most concerned about as a parent when it comes to your child’s financial education.  I like to think of this as a two sided coin.  The first side of the coin is teaching them how to handle money.  This is how to relate to their money in a healthy way that will help them to develop what I call ‘healthy financial habits’ later in life.  The second side of the coin is teaching your children to invent their own solutions when it comes to money, that is, not to rely on hand-outs for survival.

This book will be released soon.  Watch out here so you can get your copy.