All posts by Lynne L. Finch

“It’s time to teach the kids how to manage money they can’t see or touch,” says the author of The No-Cash Allowance. Follow Lynne’s common sense approach for teaching children to manage money as a number starting with kids as young as pre-school and continuing through high school.

Kids: How to Stop Parents From Raiding Your Piggy Bank

Kids, here’s a sure fire way to stop parents from raiding the piggy bank.  In the T. Rowe Price Parents, Kids & Money survey parents  admit that they “borrow” money from their kids’ piggy banks. Now that the cat (or piggy bank) is out of the bag we know who has been dipping into your stash.

To stop piggy bank thievery in your home, insist that your parents set you up with The No-Cash Allowance.

No-Cash Allowance: An allowance system in which a child controls all funds received from parents through a written account initially kept in the home. Adults act as bankers and the child as account owner.

With a no-cash allowance you have a written account, similar to your parents checking account. Consequently, all you need is a pencil and account log. Download account logs here

With a no-cash allowance account you keep track of your money. That means you write in deposits from allowances and other sources of money, perhaps chores that you get paid for.

When you want to spend money you may ask for a withdrawal. As a result, your parents give you the cash. Just like an ATM machine in your home. Pretty cool, huh?

Or you may go shopping with your parents. They pay for your purchases at checkout. At home you subtract the amount. Just like a debit card. Very cool.

No-cash allowance to the rescue

On allowance day you don’t have to remind your parents, or roll your eyes when they tell you that they don’t have the cash. You simply add the amount they are supposed to pay you and see your balance grow. When you want to spend money you make the withdrawal, subtract the amount and your balance gets smaller.

With a written account you always know how much money you have without having to count it. However, if you don’t keep good records, you can’t show your parents your balance when it’s time for a withdrawal.

Ask your parents to read What is a No-Cash Allowance to help them get started.  Make life easier for you (and your parents) by setting up a no-cash allowance today!

Lynne Finch helps parents teach their kids about money from piggy banks to online banking. “It’s time to teach the kids how to manage money they can’t see or touch,” says the author of The No-Cash Allowance. Follow Lynne’s common sense approach for teaching children that money is a number with kids as young as pre-school and continuing through high school

Money Talk: The National Debt and Kids

What about the national debt and  kids? Here’s a startling statistic. The lifetime share of our national debt for kids (two-year-olds) is estimated at $1,487,787. Consequently, this generation needs a about $1.5 million  just to keep up with Uncle Sam’s spending!

The national debt is not going away quietly. So what can parents do to help put this in perspective for our kids. First of all, start a dialog in your home. Help your kids understand that government choices about money create long-lasting effects.

Here are some thoughts to get you started talking about national debt and kids.

Understanding national debt and kids

  • Kids see tangible possessions but can’t see borrowed money used for the purchase. Therefore, kids don’t know that debt is like a bill that needs to be paid. Buying a house is a great example. Taking out a mortgage is a promise to pay the money back over time.
  • As a result, loan payments uses part of one’s monthly income. Therefore, this reduces the amount of money available for other spending. Car payments are a good example of how a regular payment is treated like a bill to be paid every month.

What about the national debt?

  •  Explain that the government “borrows” money to pay its expenses creating the debt. However, be sure your kids understand that the money the government is spending comes from the taxes you pay, local, state, and federal.
  • Vote. Find out how candidates stand on financial issues and vote. Elected officials spend your tax dollars.
  • Contact elected officials. Local, state, and federal government officials want to know what you think about budget issues. Show up at local government and school board budget hearings to voice your interest.

Involve your kids in your spending decisions and explain your rationale for making some of the choices you do. Perhaps this year your family votes to take a less expensive vacation, or to forego buying a new car. Money decisions have consequences.

Teach money management to kids

Managing money is an essential survival skill for today’s children.  Therefore, parents who help their children learn money management through hands-on practice at home provide kids an essential life skill.

The No-Cash Allowance is a reliable, repeatable and realistic method to learn money management skills at home. Children from pre-school through high school practice concepts of debit card, ATMs, electronic transfers and credit transactions using their own money.

Examples of dialogue between parent and child create a picture of real life situations. Charts, tables and illustrations show how to set-up and let children track all their money in their own accounts. Kids see the “big picture” view of their money and learn that each decision affects the balance, a reality that will be constant throughout their lives.

Lynne Finch helps parents teach their kids about money from piggy banks to online banking. “It’s time to teach the kids how to manage money they can’t see or touch,” says the author of The No-Cash Allowance. Follow Lynne’s common sense approach for teaching children that money is a number with kids as young as pre-school and continuing through high school.