Kids and Money Management Plan

Here's how to teach your children the value of money, establish an allowance system and get them to save.

A family money-management plan with any hope of success will have to include the kids -- which is easier said than done. You can teach your 4-year-old to close the front door, but you can't expect him to understand that you don't want to pay for air-conditioning the whole neighborhood. A teenager, on the other hand, should understand that and more.

Lessons in financial responsibility must take into account a child's age and level of maturity, but there are general guidelines you can follow.

• Teach Kids the Value of Money
  Here's how to encourage financial responsibility and what you can expect of your children.

• Allowance: When and How Much?
  Start at an appropriate age so kids can start learning how to handle money.

• Using Money to Reward or Punish
  Cash as an incentive should only be used in small amounts in select circumstances.

• Ways to Give Money to Children
  Custodial accounts and trusts are ways to transfer cash to your kids.