Allowance Magic - Turn Your Kids Into Money Wizards

Allowance Magic is a great book if you want to help your kids learn the true value of money and the importance of having savings, following a budget, and not throwing away money on things that they don't really need.

Pros

Cons

You probably give your kids a weekly allowance, however, if it is just so that they have money to buy 'extra' stuff that they want, then it isn't going to help them learn anything about managing their money.

Allowance Magic offers an alternative, where you develop a spending plan that includes all of the things that your child spends money on, such as toys, snacks, movies, etc., and then lets them make their own decisions on how to spend their money.

With this plan, you will likely quickly find that your child doesn't want to spend money on things he doesn't need, like a small toy or piece of candy from the checkout lane of the grocery store, when he realizes that it is his own money he is spending and that he won't have that money to but other things he really wants.

Although short and a quick read, Allowance Magic is very complete and covers everything you will need to know to implement their plan. This includes age appropriate advice on when to start each allowance type, from a simple spending plan for preschoolers, to a saving and clothing allowance for older children. Plus learn how to deal with advances, your child's earnings from extra jobs, and transfering money from one allowance to another.

If your kids believe that you can always get more money from an ATM or that you can buy anything you want because you can simply charge it on a credit card, then Allowance Magic will help them to become financially responsible and learn how to carefully manage their money.

Updated: June 6, 2004

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