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[quote=Anonymous][quote=Anonymous]Until my kids got jobs, I gave them allowance.  I expected them to use their allowance for gifts for family birthday and Christmas, whatever they wanted to buy (think Legos, jewelry, toys, make up beyond the basics that I buy, etc), and food that I don't normally buy (like gum, candy, snacks they want if I have packed snacks for our outings).

My kids started working at 16.  After that, they had to pay for their own outings (I still pay for family outings) and expenses related to working (uniforms and training), gas for the car, car insurance (though I have gifted car insurance to them for birthdays and graduations).  Once work became full time, they had to start paying for most everything.

[b]I am laughing about the PP who won't let her kids get a car until age 21.  That was the first thing mine saved for and bought.  My oldest had one at age 17, which he paid for on his own, including what it took to make it run. [/b]

I think the real issue here is when do you intend to teach your kids money management.  We've discussed it all along, but until they started working, didn't go full force with it.  So until they got jobs, the consequences of not spending wisely and saving was that they night not be able to get that Lego set or must have lipstick.  But, if you have kids who are ready earlier and you go with big allowances, you can start the money management process earlier.  [/quote]

I am the PP who will not allow my kids cars until age 21.  The reason is that the we already have 3 cars in the family and it is accessible to them. A car ownership is akin to the American dream of a home ownership and a weed-free green yard.  Wasteful, time consuming, expensive and environmentally terrible. If there is a need for a car (say for a summer internship or job, shopping, going for a show, going on a date), they can either take our car or catch an Uber. Our aim is that when they are out of college and start their first job, they begin life with zero college debt and no car payments.
How can young people save from their very first measly paycheck if they have to factor in payments for student loans and car payments?  Besides in my opinion, getting cars at an older age (21 instead of 16) allows these young adults to have more years of driving experience, they are less likely to drive when drunk and less likely to drive distracted with their teen friends stuffed in their car etc.  Plus, they have more maturity when they do become car owners.  Europeans and New Yorkers do not typically have cars when they are teenagers and they seem to be ok.

I agree that the reason for this thread is to teach financial literacy and responsibility to our children. Having accounts in the name of the children before they start college can negatively impact financial aid that they get.  That does not mean that they should not be an active participant in the financial decisions and activities of the family.  My kids are well aware of what our take home is, how we budget for things, how to pay bills online and check the statements (bank, credit cards) for accuracy etc.  They are also aware of how much money is in their designated accounts (under our name) and they do track it too.

We also need to teach our children how to cook and manage a household before they are ready to launch.  There are health, social and financial consequences if they are unable to do this.  [/quote]

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