The best way for children to learn is through active involvement, says Hodgens. “If we want our kids to learn money management skills, we need to give them money to manage. An allowance is one of the easiest ways to do that.” An allowance shouldn’t be free money. “It’s not an entitlement. There are strings attached,” she adds. She advises parents and children to draw up a contract that explains what the kids will now be responsible for paying for with their weekly allotment.
Zoya Tereshkova/Newscom/File
