Trans4mind Home Page

Money Management Skills for Kids

By Dawn Goldberg

I have a confession to make. I had no money skills growing up whatsoever. My parents lived paycheck to paycheck, and my mother frequently agonized over how to buy groceries for the week.

Because of our financial situation, there was rarely money for "extras" - going bowling, vacations, toys, books. Heck, we barely had money for necessities like clothes. When I was fifteen and old enough to work, I became responsible for buying my own clothes. As a teenager (and, don't forget - a girl!), I spent my money on outer clothes: shirts, pants, and the like. Underwear? Heck no! I wasn't going to spend my money on such a frivolous item as underwear.

As an adult now, I realize that not only did I not learn the money management skills I needed, but also that I learned some things I shouldn't have. Things like underwear aren't important. To this day I still have a hard time spending money on underwear and bras (although I recently bought three bras! Yea me! However, I have to admit that I still didn't like spending $40 apiece on them).

My mother shouldn't have shared quite so much with me; I grew up afraid to ask for anything that might involve money. It affected me in several ways, the most significant being that I only applied to two colleges. Since I had to pay the application fees myself (and working at a drugstore didn't give a teenager THAT much disposable income), I had a limited budget.

This article isn't supposed to make you feel sorry for me (I'm very happy where I am today - even with old, ratty bras), but to drive home how important it is to teach our children good money management skills.

Two years ago we implemented an allowance system for our girls. Once a week they get the dollar equivalent to 1/2 their age, and that amount is divided as follows:

- 20% to the charity of their choice

- 40% to savings

- 40% to disposable income.

Charity - Every six months, the girls pick a charity, and they decorate a jar with a picture of the particular charity. Each week, the charity money goes Plop! into the jar. So far we've donated to the National Zoo (pandas for six months and fishing cats for another six months), the National Disaster Search Dog Foundation, and Red Cross (for Hurricane Katrina relief). Picking the charity allows them to really think about the particular organization and their needs, and sometimes they'll donate extra money to the charity. And we match the donations as well.

Savings - We tell the girls that savings (essentially their piggy banks) are for long-term, big, important goals. I imagine this to be used for things like a school trip to Europe, down payment on a first car or house, or extra money for college. After six months, we count the money and then take it to the bank to deposit in their very own accounts.

Disposable income - This is for the girls to spend as they will. The first time they got allowance they spent it all on toy machines, and I had to almost physically hold my husband back as he tried to stop them. I wanted them to see what happened when they spent all their money, and feel what it was like when it was GONE! They've since graduated from that impulse to spend, spend, spend, and now they very consciously and determinedly save their disposable income for bigger things (like Barbie dolls or the current favorite, Sweet Streets. Yes, I have girls!).

We've found that the girls already have a strong understanding of money, from basic math (how many dimes are in a dollar) to the more complicated concept of interest (we go over their bank statements for their savings accounts together).

I'm happy to know that we're establishing a strong foundation for their money intelligence, and that they'll never shy away from buying underwear.

About The Author
Dawn Goldberg is a Certified Virtual Assistant, COO of Assist University, mother, community leader, and former teacher. Her vision is to create a resource that helps parents find ways to enjoy valuable, constructive time with their children every day. Contact her at or visit

Copyright 2005 Dawn Goldberg. You are welcome to use this article online in electronic newsletters and e-zines as long as it remains complete and unaltered (including the "about the author" information).

From our extensive site, you'll find good info on many topics using this search:

Support your personal development with these popular and effective hypnosis downloads...

  • Public Speaking Fear ~ Banish speaking anxiety and nerves with hypnosis.
  • Motivate Yourself to Exercise ~ Build a powerful exercise habit that you can't break.
  • Get Rid of Fear & Anxiety ~ Stop worry and apprehension wrecking your life.
  • Self Esteem ~ Break the negative trance of low self esteem and give yourself a chance in life.
  • Create Your Own Reality ~ Use the power of your unconscious mind to transform your life.
  • Deeper Self Respect ~ Use hypnosis to connect with your true inner worth.
  • Detach From Fear ~ Tune out nervousness and anxiety with hypnosis.
  • Improving Concentration and Focus ~ Learn how to discipline, direct and command your mind to improve your performance.
  • Exercise Motivation ~ Give you powerful keys to getting back on track with your exercise - and staying there.
  • Overcoming Shyness ~ Provides an invisible security blanket allowing you to develop social ease and overcome shyness.
  • Quick Confidence Booster ~ An audio hypnosis session that's specifically designed to get you (quickly!) back on track.
  • Stop Negative Thoughts ~ Learn powerful hypnotic techniques to stop negative thoughts before they start.
  • Overcoming Procrastination ~ Let hypnosis help you get on with what you need to do, when you need to do it. Let nothing hold you back.
  • Think Thin ~ Use hypnosis to re-train your brain and lose weight naturally... that's how to get and stay slim.
  • Fall Asleep Fast ~ Relearn how to fall asleep fast and enjoy a good night's sleep.
  • The Next Level ~ Designed to radically boost your performance in any field. It's based on a technique used by top athletes and other successful people to help them make a big stride forward.
This is our selection of favorites, but there's a session for every need! Choose from over 800 Hypnosis Downloads...
Search now on an issue that interests or concerns you...

View all the Hypnosis Downloads here

The New Wave in Meditation Technology

Click here to learn more about the iAwake Profound Meditation Program
The iAwake Profound Meditation Program
is a way of enhancing your meditation practice, making meditation not only easier and more enjoyable, but also more efficient and effective.
Profound Meditation provides the smoothest, deepest, richest, most profound meditation experience available anywhere...
Here is a link to a free 20-minute track from iAwake Technologies - a sample of the type of tools that will deepen your meditation immediately and help you quickly become a successful meditator. It's the opening track of iAwake's flagship product, the Profound Meditation Program, called the iAwake Experience...
Learn More and Download the iAwake Experience
We think you'll find this technology a tremendous aid on your transformative journey of becoming your best and most creative self - and you can get started today!
Copyright © 1997-2018 Trans4mind Ltd