When’s the right time to cut your children off financially?
Now, says personal finance expert Suze Orman. “Cut your kids off as soon as you can, “the sooner the better, because otherwise they become financially dependent upon you and the older they get, the harder it is for them to be cut off.” Financial dependency can start with something as small as giving your child an allowance. That’s because an allowance can lead kids to assume they deserve handouts. “Have you ever even asked them the question, ‘Why do you get an allowance, my child?” Their answers, won’t cut it.
“Because I was born,… Joey gets an allowance.” No, help them to become independent instead. “Your kids need to work for money.” On the other hand, tying an allowance to the performance of chores raises other issues. “Earning” money by doing things for the house sends a message to kids that, they should always expect a reward for being a team player. “Kids should do chores and take on household responsibilities because, they are part of the family, and being part of the family means contributing.”
However you thread this needle, it’s important to talk to children about money early on and help them form the right values around it. The earlier you teach kids that making money comes from working hard, the better. Otherwise, “they see you taking money out of the ATM,” “but,… they don’t see you putting the money in.”
Article credit: CNBC
Photo credit: US News Money