It is important to teach children early the importance of establishing a savings account.
An allowance is a helpful savings tool but a child will spend an unlimited amount of money as long as it’s yours. “When their money is on the line, it’s a whole new ball game.” Start an allowance around age 6 with a weekly amount equal to half your child’s age and you can increase it as your child gets older.
The most important thing that you can say to your child is “No” and explain to your child the reason why. “Part of the fun of being a parent is buying things for your children, but say yes too often and you’ll created spoiled kids who grow up feeling entitled.”