As to when you should begin teaching this lesson, I guess 7 or 8 is about the right age, but a lot depends on the individual child. At that age, it should really just be a token – enough to buy himself a tiny treat each week – such as a comic. As he gets into early teens, his needs (and desires) will increase. He will want a new CD once every few weeks, or will run up a bill on his mobile, or ‘need’ a new pair of trainers or a football. So then the amount should increase, perhaps to £5 each week. This will, hopefully, encourage him to save up for things that he wants.

Then, once he understands the concepts of ‘saving’ and ‘earning’, you could begin to make him an allowance. Out of this he should be encouraged to buy clothes (apart from uniform, or vital things like winter coats), music, phone, trips to cinema with friends or presents. How much depends on you and your circumstances, but it should not be too generous. I would suggest no more than £30 a month at age 15. As he would be too young for a cheque book or credit card, the money could be paid into a bank account and he could have a cash card to withdraw money for shopping trips. Try to choose an account that pays interest, so he can also learn to ‘save’ and enjoy watching his money grow.

At 14 or 15 many young people begin to think of working outside the home too, and I think this is to be encouraged, as long as it doesn’t get in the way of school work. Babysitting, waitressing at a local café or working in a shop on Saturday can instil a sense of responsibility in young people and give them a real sense of independence, as well as bringing in much needed cash. It will also, incidentally, look good on a CV when applying for jobs or college later on.

Most importantly, it will reinforce the understanding that money needs to be earned.

Debbie