Let's review and reinforce the healthy steps that parents can take to help their kids to grow up financially literate.
The best way to make sure that your kids understand the reality that Money Doesn’t Grow On Trees is to put them on an allowance and to teach them how to budget their money. These lesson will last for a lifetime...even for a knight!
No one gets a “free ride” in life and by giving your kids an allowance you are teaching them the “work for pay” principle. Your child’s allowance is tied to chores and will show the relationship between work (chores) and money (allowance), clearly an important concept.
Not only will the child someday work for money, but earning an allowance will underscore the fact that you, the parent, work hard for your money, too.