Aug 26 2010

Teaching kids about money

Ellie Kay, America's Family Financial Expert talked with us today and teaching our kids about managing money. Should we give an allowance? What about paying for chores? If you've got questions, learn more here: Also, if you've got financial questions for Ellie Kay, feel free to post them here or email us at

Listen to Ellie Kay: Segment 1 and Segment 2

Categories: Ellie Kay
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Comments (9) -

8/21/2010 5:23:04 AM
Sarah Gowing United States
Sarah Gowing
I'm 16 and I was wondering how much is appropriate for an allowance? Should it be how old you are, or just based on how responsible your parents think that you are?
8/21/2010 5:25:43 AM
Lisa United States
In talking about Lindsay Lohan and not sticking to boundaries...My theory just came about this week when my daughter went to jail for the 8th time because of drugs. In my family none of us kids ever went to jail or got in trouble with the law. We were raised in a strict military home..those of us who raised our kids not like we were raised all have kids that are either in jail or in the system..where as my brother who is career military has and neither of his kids are in or have been in for all the heart ache I have been through in the last 2 yrs with my daughter I am telling you out there that have young kids...make rules with consequences and consistanly stick to them you will be doing them a favor!
8/21/2010 5:39:19 AM
Lara United States
Kids always want new toys while a the store.  I used to tell my daughter that it was too much money and we didn't have that much right now.  Then while out at Target one day, my daughter (then a year and a half or so) asked me how much a toy costs.  I told her $6 (or whatever the price was) and she asked if that was a lot of money.  I told her to count to 6.  She did.  Then I asked her if that took a long time or not.  She made the decision and if it took a long time that was a lot of money and if it didn't that wasn't a lot of money.  She learned to make the decision for herself which took the pressure and guilt off of mom.  She also learned counting, time equals money, and comparing...all because that toy looked cool.  
8/21/2010 5:43:35 AM
harrison United States
About rewarding kids for chores done:

I do not agree with you that kids should be rewarded for doing chores at home. They instead be taught responsibilities - not rewards.

If you just reward them in order to do a chore - they will grow up expecting that  - that somebody has to pay them or reward them for doing a 'thing' or a chore.
How are they going to become good stewards f our communities if they will expect rewards  -what about volunteering? Community work?

It is one thing to teach them about money and another to reward them for taking out garbage or cleaning up the yard.

Do not reward them to make their rooms - this is something they need to learn as part of their responsibilities at home.

Teach them for example that mommy goes to work so she can feed them. They also need to clean up their rooms,  yard or take out garbage in turn....
8/21/2010 6:05:42 AM
magon United States
you know i really and trully do not beleive in paying kids money to do there own kids earn money by doing somthing above and beyond what ever they are asked to do.....or if they had a really good week at school, (my son has a hard time some days) ...or when they help me out with the baby. and since my kids are not old enough to know how to spend money wisely i only give them 25cents here 1doller there...or i let them pick somthing out at the doller store. and i make sure to praise them when they did something awsome....i beleive when they actually learn the value of a doller is when they can earn more money but until then a quarter or a small toy will work
8/21/2010 6:48:20 AM
Chuck United States
Really disappointed in Ellie Kays comments

I heard Kelli ask about giving your child an "advance" on their allowance. I was very disappointed to hear the Financial Expert say that it was ok. Why would you want to teach your children to go into debt for something they cannot afford? Proverbs 6-7 clearly states "Train a child in the way he should go, and when he is old he will not turn from it. The rich rule over the poor, and the borrower is servant to the lender." I am no financial wizard, but I do believe what the Word says, and I no longer wish to be the "servant to the lender" nor do I want to teach my children and grandchildren that is a "good" option. I applaud Kelli for not giving advances for something they can save and buy with their own money. I feel it teaches self control in a world that says it is ok to buy it now and pay for it later.
8/22/2010 9:20:26 AM
Carmen United States
I agree w/ magon I do not get allowance 4 doing dishes, fixing their meals, laundry etc. It is all about team work. also God's word says to watch our motive in asking 4 what we want. I tried the allowance 4 a year 4 chores being done, even had 3x5 cards on the fridg w/what had 2 be done...guess what chores still did NOT get done.
Anyway when they wanted something special they had 2 work 4 it & was rewarded according 2 the job.  They appreciated what they bought more & took care of it. When they were through w/it they sold it in a garage sale.
8/22/2010 8:34:11 PM
Tim United States
As a former teacher, and a Christian, I am encouraged by a family who challenged their children to "think outside the box" when it came to money and the Kingdom of God.

It's the story of Megan MacDonald, a teen who raised $30,000 to fund a church-orphanage in Kenya. She did this by, essentially, “giving up” her sweet sixteen birthday party to request donations. This was followed by approximately a
year-and-a-half of fund raising. Megan and
her parents visited the facility in Kenya in January to attend the dedication service. It was attended by more than 300 people.

8/24/2010 12:46:26 PM
Margarita United States
I am in middle school. I don't get an allowance, because my parents think you should help around the house anyway, because you are a part of the family, not just to do it for money. Our parents don't get paid, and we shouldn't either, because if we live there, we should all pitch in. I get paid for high level tasks, like spreading bark and other out of the ordinary jobs.

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