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8 Tips for Setting an Allowance That Works

by Christine Carter and Candice McGarvey @herdollars


Following these rules will teach your kids to be responsible with money.

In a radio interview that went viral this summer, a privileged young woman going by the name of Kim confessed she had blown her college fund. Her grandparents, she said, had given her $90,000 to attend a school costing her $20,000 a year. But the money was gone, so she had no way of paying for her upcoming senior year. Kim said she spent the money on school clothes and other goodies: “I probably should have not done that. I took a trip to Europe.”

Kim blamed her parents. “…Maybe they should have taught me to budget or something,” she said. “They never sat me down and had a real serious talk about it.”

We can’t tell whether Kim’s story was a hoax or not. But the issue her interview raised is real: Most kids don’t grow up to be financially responsible adults. So how can we ensure that our sons and daughters grow up to be financially responsible?

If you still have children living under your roof, the solution is plain: Give kids an allowance. Continue this post on Time.com to learn our 8 essential tips for setting an allowance that works.