The Barefoot Investor Scott Pape says it’s never too early to start imparting money managing lessons to your children. We assumed that meant displaying sensible spending behaviour, assigning chores in exchange for pocket money or perhaps just explaining that the ATM isn’t a magic font of unlimited funds.
But according to one US mum, it means charging your kindergartener rent.
Essence Evans shared to Facebook that she takes back 70 per cent of her five-year-old’s weekly allowance.
“Every week she gets US$7 dollars in allowance. But I explained to her that in the real world most people spend most of their paycheck on bills with little to spend on themselves,” the Atlanta woman wrote.
“So I make her give me US$5 dollars back. $1 for rent $1 for water $1 for electricity $1 for cable [television] and $1 for food. The other $2 she gets to save or do what she wants with.”
LISTEN: The Barefoot Investor shares a slightly less harsh way to teach kids the value of a buck, on our podcast for imperfect parents. (Post continues below.)