There is a time and place for these discussions. We don’t burden the children with the difficulties we have put ourselves in by borrowing more than we can pay. What we are trying to do is to teach them as we learn so that they don’t make the mistakes we’ve made.
We started with allowance, and everyone gets one starting at age six. It then progresses up by $.50 per year (mom and dad also get an allowance). For this payment, there are certain things that are expected. Each month, we pick chores to do for that month. If these chores are completed, then payment is made.
From the allowance, ten percent goes to charity (or the church) so that the children start to understand the importance of giving back. We also take out twenty percent for taxes. This goes into a fund that we vote on how to spend. I don’t want the children to get tax shocked when they get their first “real” paycheck.
Finally, the remaining money is divided between savings and can be spent.
Even at the young ages of 10 and 8, our children are beginning to grasp the idea that debt is not something they ever desire and that working for what you want (and saving to get there) is worth the wait.