(NBC News) – An old question parents have been asking forever is getting some new attention and a new approach on how to teach children about money. If kids are on top of their chores, most parents are okay with a weekly allowance, but the fear of making the wrong decision on allowances is why the old debate rages on.
According to one official there really isn’t a right or wrong answer. Parents should want kids to understand what money is and understand how to manage it.
“In many cases, kids have no idea about how to handle money until they get to college or in some cases beyond,” says Bill Dwight.
Bill Dwight got so serious about educating his 5 children about finance he founded famzoo.com, developed an app and prepaid cash cards that handle allowance deposits and withdrawals.
“My objective was to help parents teach their kids the basics of personal finance,” Dwight explains.
But to get there, parents have to first get past whether to offer an allowance at all.
“Some parents will have allowances that they say upfront, whatever I give you 10% has to be saved for charity or a certain amount must be saved in savings,” says Dr. Vanessa Jensen a Psychologist with the Cleveland Clinic.
That way allowances also allow for an education.