• “Many families find this practice useful for children of all ages. Divide your child’s allowance among 3 “jars,” for spending, saving, and giving. This will reinforce the importance of saving and giving and also will provide early practice in money management. Once or twice a year, talk with your child about the “giving jar” and help identify possible recipients. If your child likes animals, visit the local animal shelter or do research together on the Internet for an appropriate charity. Some parents encourage their children to hand-deliver the gift or to add volunteer time to their financial donation. Parents of older children can provide an added incentive by offering to “match” the contribution”  Remmer, Raising Children with Philanthropic Values
  • “Another challenge in raising children in the context of wealth is how to give them a balanced sense of the role of money in their lives, ensuring that they make the connection between work and reward-that is, the value of money. “If affluent parents do not actively instill within their children a sense of value and respect for money and the effort earning it requires,” asserts Hausner in Children of Paradise, “the result can be a child who not only believes there is an endless supply of capital but one who consequently abuses it.”” Wealth in Families Third Edition (Charles W. Collier) Page 42
  • “Grade school, ages 6 to 12
    • Discuss caring for possessions.
    • Structure an allowance: Most experts suggest a modest amount for being part of the family and doing certain basic household chores.
    • Provide jobs for pay.
    • Encourage long-term savings: Consider matching any money they will save for over a year.
    • Set limits around money, for example, not buying everything they want when you go shopping.
    • Introduce philanthropy: Help them to give and take them on-site visits.

    Teen years, ages 13 to 18

    • Insist on summer employment; fund their Roth IRA.
    • Guide them through their budget and a 1040 tax return.
    • Advocate smart consumerism: For example, discuss the messages in advertising and the impact of advertising on their purchases.
    • Discuss the intelligent use of credit cards and checking accounts.
    • Explore investments on the Internet.
    • Engage them in philanthropy: Encourage site visits and include them in evaluating gift decisions.

    College years, ages 18 and over

    • Work with them on a college spending budget.
    • Insist on summer employment and fund their Roth IRA.
    • Set up adviser-facilitated learning about investments.
    • Provide money for them to manage.
    • Explain the roles of trustee and beneficiary, if trusts are used in your family.
    • Engage them in philanthropy; add them to the board of your philanthropic fund.”

    Wealth in Families Third Edition (Charles W. Collier) Page 55-56

  • “Children need to learn early and often that they are responsible for their decisions, including those that involve money, and must live with the consequences.” Wealth in Families Third Edition (Charles W. Collier) Page 56