The No-Cash Allowance Author Recognized as Mompreneur

MommyMastersLogoLynne Finch, author of The No-Cash Allowance was named the Mommy Master of the Month. This monthly award recognizes a mompreneur through an initiative created by Ellie Hirsh, founder of MommyMaster.com.

About The No-Cash Allowance

Studies show that women are more proactive in teaching their children about money. As a mom my determination to teach my kids about money led me to create a strategy that simplifies the allowance situation with kids. As a result I could provide years of hands-on money education in my home. It all started because I didn’t have cash for my kids’ allowances.

In a moment of inspiration (or desperation), I paid my kids, who were ages 5 and 3, with virtual money, written in an account similar to direct deposit. This is the basis for The No-Cash Allowance.

Because I believed allowances are an important teaching tool I published my book as a guide for other parents. While the book is about kids and allowances, it’s really about kids learning to make and understand their own money decisions.

When my book finally rolled off the press our kids had left the nest.  We could see that they were independent and taking responsibility for managing their financial resources. Never once did our kids call home from college to ask for money. So we knew that our system was successful.

Help children manage money

Moms are concerned about their kids’ financial future, but may not know how to help them learn to manage money.. It  is important to help kids learn to make thoughtful day-to-day money decisions. As a result, we can help our children learn to be good managers of their finances.

Knowing how to manage virtual money–money that can’t be seen or touched–is an essential survival skill for the next generation.

As a mom, I set out to teach my kids about money. What they learned reached far beyond dollars and cents. My children learned essential life skills like confidence, decision-making and responsibility. It wasn’t about the money at all.

Mompreneur honored by Mommy Masters

About this award, Lynne says, “It’s an honor to be recognized for doing my part in helping moms educate their kids about money. Parents tell me that using The No-Cash Allowance has surprised and pleased them. They see the improved attitude and responsibility that their kids have about money.”

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. 

The No-Cash Allowance is a Mom’s Choice Awards® Gold Recipient as a Parenting Book.

Top-down Financial Education Won’t Help Your Kids, but You Can!

my-own-money
Piggy bank wants a no-cash allowance

How can parents who are not financial experts teach their kids to manage money at home at no extra cost?

Start with an allowance, but not the traditional pass-through allowance where money passes from parent to kids who spend as they want. Isn’t that what would you do if someone handed you money with no strings attached?

Rethink allowances as a tool for your kids to use to develop money management skills.
The money you give your kids is yours; it is money you would spend on them anyway. What you are doing is giving them control of that money. At no extra cost to you.

Require kids to manage money for both fun and necessary expenses.
The key is to give kids spending responsibilities. Require them to pay for their school expenses, soccer lessons, birthday gifts for friends, or whatever expenses you decide on. Let your kids do the mental homework as they figure out how to pay their bills and go to the movie.

Train your kids to manage their money as a number.
Get them in the habit of tracking money as a number. Start with a pencil and piece of paper.  That’s what you would do and what they will do as adults.

Put your kids in control of their money.
If they forget to record their allowance, the money doesn’t exist! If they want to spend money you become the family ATM and dispense the cash, while they write the withdrawal as a number and update their balance. No exceptions; every transaction is recorded as a number.

Let the kids make their own mistakes.
If they want to buy the toy you know will break, let them learn the lesson. Their mistakes become learning experiences. Better than anything you could tell them.

Offer advice but not
Stop telling. Let your kids get hands-on experience while you keep hands-off. They would never learn to ride a bicycle if they only listened to you talk about riding a bicycle.

Recognize that money management is a skill that requires practice.
Money skills include:

  1. Adding and subtracting money as a number
  2. Keeping a record that shows a financial history
  3. Making decisions about how to use money for future spending

The most effective way for kids to learn to manage money is with hands-on experience. This is where parents have the advantage over schools. Parents can give their kids money.

When parents give kids money, along with responsibility and the opportunity to make their own decisions kids learn that decisions have consequences. This is how parents can provide a financial education at home at no extra cost without being financial experts. Find out how at www.TheNoCashAllowance.com

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. 

Helping parents teach their kids how to manage money as a number.