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[quote=Anonymous]My background for the record: I grew up in a financially sound home.  We got allowance and my parents saved up and paid for college and saved up and have plenty for retirement.  My parents did not start out wealthy but lived frugally and saved a lot of money.  Dad worked hard to earn extra money at his job.  I am grounded financially and am good at managing our family's money.

We talk about money in front of our kids.  We generally have enough to do most things we want but we don't necessarily do them just because we can. We like to make special events special and not everyday events and we don't like to waste money either.  So for example, if children want to go to some waterpark that's $20 per person, I will often say something like, "I'm not paying $80 to go to the water park on a holiday weekend when it's going to be very crowded when we can go during the week for half the cost or we can go when a coupon comes out."  They hear things like that a lot.

If they want an expensive clothing item which I think is "not worth it" I will tell them they can receive it as a xmas or birthday gift or save for it with their allowance/birthday money.  For ex: my oldest bought Uggs with her xmas/bday money.  My youngest wanted Tom's which we gave her for xmas.

My kids start allowance about age 5-6.  I give 25 cents for each year so a 6-year old gets $1.50 per week.  My 12 year old gets $3 per week.  From that money, they can do whatever they want with it - I do not force savings/spending/charity.  I want them to learn to manage on their own.  I do encourage savings for bigger goals.  They generally buy things with this that I wouldn't buy - extra toys or candy/gum at the store, a trip to the movies with a friend, etc, games on the tablet, or expensive brand name clothing as mentioned above.

For big monetary presents - my parents give $100 for each birthday and each xmas, and an uncle gives $50 for each birthday, I let them keep part of it to spend and put the rest in a bank account in their name that I tell them is to do something or save for something big for when they are older.

I did teach them about savings and interest and explain to them why it's in the bank versus in their piggy bank.

As far as our money, they know that we are comfortable and can afford the basics plus vacations and extras, but that doesn't mean we buy whatever we want.  They know we're saving to pay for their college.

They probably didn't really know much at age 2, however, we probably started talking about money more between ages 4-6.

Hope that helps some.  [/quote]

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