Comments on: How to Teach Your Child About Financial Responsibility

on 8/8/2006 Each time a college student makes a monthly payment, encourage the young adult to put an equivalent amount into a savings account. That way, the child can start building a nest egg for long term purchases.

on 1/18/2006 If you co-sign a credit card for your child, watch carefully (maybe using e-mail notification) to make sure your child does not miss payments and hurt your credit rating. As soon as your child's credit has been sufficiently established, remove your name from their credit card.

on 11/22/2005 Make your child earn everything.
Getting things handed to them will teach them nothing. When you work hard for something, you'll take care of it and appreciate it. What you do now will come back to haunt or
help.

on 11/22/2005 I would encourage parents to enroll children in their credit unions. They could empty piggy banks and take their money to deposit when parents go to transact business. This can be a good learning and sharing experience.

on 11/22/2005 As a child, I wasn't given an allowance. Instead, I got paid for doing each chore around home. This included doing dishes, raking leaves, vacuuming, and cleaning the bathroom. It taught me that money had to be earned, and it wasn't just handed to me.

on 11/22/2005 If you give your child an allowance, be sure that it's understood that the only other money they can have is money they EARN--resist the temptation to supplement their allowance with handouts "just this once".

on 11/22/2005 Allow your child to participate in decision making about a purchase. Discuss the various needs your family has and create a pro and con list for the brands you pick for your selection.