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Teaching Financial Responsibility: The Elementary Years (ages 5-9)
During the elementary years (ages 5-9), the children learned the fundamentals of managing money.
During this phase (ages 10-12), the preteens continue practicing these money management skills. One difference is their allowance increases to reflect the increase in demand of their schoolwork and their responsibilities/chores.
The preteens make monthly visits to the bank now to deposit their “save” money, and they keep their “spend” money in a wallet.
A nice wallet makes a good Christmas or birthday gift!
Small extra work opportunities are offered for the preteens to earn extra money – any earned money is split between “spend,” “save,” and “give.”
They are encouraged to “save” as much as possible even beyond the required 40%, especially if they do not have anything in particular they are working to buy. This is especially important to counteract the impulse to spend money just because it is in their wallet and to develop the “saving” mentality.
NEXT: Teaching Financial Responsibility: The Early Teen Years (ages 13-15)