Now that my daughters are young adults, I see how little traditional schools teach about money. Looking back, I realized that one of the best things I did was stop treating allowance like free money.
Most parents give their kids an allowance and hope they figure out budgeting. But as entrepreneurs, we know better—real financial success comes from earning, investing, and understanding opportunity costs.
How I Shifted from Allowance to Real-World Money Lessons
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Pay for Value, Not Just Existence
Instead of a set weekly allowance, we created “earning opportunities.” Whether it was designing a flyer for my business or organizing family events, they learned that money is a byproduct of effort and value. -
Let Them Manage Their Own Money (And Mistakes)
At 14, my younger daughter blew over $200 on clothes she regretted. It was painful—but it taught her more than any lecture could. Better a $200 mistake at 14 than a $12,000 mistake at 30. -
Encourage Entrepreneurship
One summer, I gave them a small budget to launch a lemonade stand. But instead of doing the work for them, I made them plan expenses, marketing, and pricing. They made $300 and learned a priceless lesson—profits don’t come without effort.
If you want your kids to thrive financially, stop giving them money for existing. Teach them how to earn, manage, and grow it instead.
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