First published in Canada by McGraw-Hill/Ryerson as Allowances, Dollars and Sense, this practical guide to teaching kids about money will be adapted to the U.S. market, including U.S. currencies, and educational savings plans. Making Allowances is a step-by-step system for helping children learn to manage money responsibly from the time they enter kindergarten until they leave for college. Lermitte begins by helping parents establish concrete, workable guidelines for allowances - from making sure they're age-appropriate and paid on time to distinguishing what qualifies as an allowance expenditure, a special "treat," or a family obligation. From there, he shows how to set family rules for savings, teaching budgeting basics, handling small family loans, and giving to charity.
Beyond that, he helps parents introduce children to the wider world of money, including: Using a debit card wisely, while maintaining good savings habits; Investing in mutual funds and establishing an investment account for your children; Gaining experience with credit and developing good borrowing and repayment habits; Learning how the stock market works and helping children choose the right stocks; Saving for higher education; Learning entrepreneurial skills and helping children run a simple business; Setting lifetime financial goals and building an early foundation for them; Along with practical advice for teaching children sound financial principles, Making Allowances goes beyond the basics to show parents how to help their kids become smart consumers. Lermitte pays special attention to helping children recognize the impact of marketing and advertising on their buying decisions, helps them set limits on spending for "cool stuff," shows how to recognize and combat peer pressure when making spending decisions, and encourages kids to think for themselves when it comes to decisions about their own money.
Packed with tips, and hand-on help, Making Allowances comes complete with ready-to-use forms, charts and worksheets, from an "Allowance Contract" and allowance payment schedule to a "Kid's Loan Contract," a loan repayment planner, and even a checklist that children can use when planning vacation expenditures.