A family money-management plan with any hope of success will have to include the kids -- which is easier said than done. You can teach your 4-year-old to close the front door, but you can't expect him to understand that you don't want to pay for air-conditioning the whole neighborhood. A teenager, on the other hand, should understand that and more.
Lessons in financial responsibility must take into account a child's age and level of maturity, but there are general guidelines you can follow.
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Here's how to encourage financial responsibility and what you can expect of your children.
Start at an appropriate age so kids can start learning how to handle money.
Using Money to Reward or Punish
Cash as an incentive should only be used in small amounts in select circumstances.
Ways to Give Money to Children
Custodial accounts and trusts are ways to transfer cash to your kids.
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