Author: PJ McDaniel
As a father of three boys (5, 7, and 10) and an investment professional, I’m always finding new ways to teach my kids about taking the long view with their money, goals, and happiness. One habit that has worked hugely well for our family is the old-fashioned allowance.
My wife and I try to instill in our children that we are a team, and together we make the household operate. The boys have typical responsibilities like putting their stinky clothes in a hamper, picking up their 1000 nerf gun bullets, or putting their dirty dishes in the sink (maybe even in the dishwasher). In exchange for their labor, the boys get paid.
Every Sunday, after donuts, is payday. In the McDaniel household, $2 a week is the going rate for an A+ job taking care of your family responsibilities. Fall a little short; you get a little less.
The benefits? We get to communicate our family values of hard work, kindness, and teamwork through direct experience. Also, great conversations: What they want to do with their hard-earned money – Do they spend it, save it, or give it away? How much goes in each bucket?
New York Times columnist Ron Leiber’s book, The Opposite of Spoiled, is a resource that I’ve found invaluable. Want more? Call, email, or set up a time to talk more about how we can help set your kids up for long-term financial success.
My nine year old son, Jack, recently left $28 and a note on my desk saying “Bank it!” Want to know how I got my kids excited about saving for the future? Listen to this 90-second audio clip about the power of compounding.
Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. This information does not reflect historical or expected results for any specific Hill client or prospective client, and is not intended as a recommendation appropriate for any individual. Investments involve risk and the possibility of loss of principal, and are not guaranteed. The values used in this report were obtained from sources believed to be reliable and do not reflect management fees. Listeners are encouraged to seek advice from a qualified tax, legal, or investment adviser before investing.
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