Should You Manage Your Kids Money?

Walter Updegrave, senior editor of Money Magazine, answered a readers question recently. Here is the question:

My 20-year-old daughter works two jobs and is going back to school part-time. Her father takes her paychecks and doles out money to her as needed. He thinks he’s helping her by doing this, but I think he’s hurting her. I worry that if she doesn’t start to manage her own money, she will have trouble in the future knowing how to pay bills, etc. What is your opinion?

Walter tells the reader to give her husband some credit for having an interest in their daughter’s finances. However, he also tells her that it will end up hurting their daughter in the long run when she is out on her own. I whole-heartedly agree with him on that one! When this girl gets a full-time job and it is living on her own, will her dad keep on paying her bills and taking her paychecks? I certainly hope not. If he does, she will have a hard time adjusting to life financially and personally. They need to begin to incorporate their daughter into her finances and teach her the proper way to manage her money. This is almost the same thing as one partner in a marriage managing all of the money and the other partner couldn’t tell you where their checking account is held. 

I personally know someone who’s father is like this. Every since she has had a full-time job he has taken her paycheck and paid all of her bills for her. No matter what they were. I think this seriously hurts her because one day, he is no longer going to be around. What is she going to do then? She is even married and this still goes on! 

Do you know anyone who’s parents take care of ALL of their finances? Do you know a married couple where one person knows NOTHING about their financial situation? Please share your comments.

One thought on “Should You Manage Your Kids Money?

  1. CreditMom

    I think this approach hurts your children. The key is to start them off with responsibility very early. This way they learn to budget properly. It’s great to get allowance but the real lesson is what do they do with it afterwards? Do they spend it all on junk or do you require them to pay for expenses? We have chosen to provide allowance for chores and then have them pay expenses like school lunches, snacks and bus fare out of this money. They also must designate money for savings. What is left over, they may spend as discretion but we make sure there isn’t much left over!

    Children need to learn by making mistakes. Always coming to their rescue is not a good way to learn.

Comments are closed.