Yesterday, at the farmers market in Santa Monica, Calif., I saw a young, beautiful mother shopping with her adorable 5-year-old daughter. The daughter reached into her purse, pulled out a $5 bill and paid the vendor for a basket of organic strawberries. There are so many great lessons here, almost too many to count.
From the time our children are beginning to crawl we start teaching them about right and wrong, personal safety issues and our family values. Unfortunately, many parents neglect to teach their children one of the most important survival skills they're going to need -- how to take care of themselves financially.
Allowances have been a long-debated topic for years -- and whether parents should provide an allowance, when, how much and what a child is allowed to do with the funds are all important considerations. How can parents really be sure that an allowance is helping their child develop good financial habits?