INDIANAPOLIS -
Learning the value of a dollar can still be a tough one, even for adults. But when is the right time to start teaching this lesson to kids, and just how old should they be to get an allowance?
Aden Shaw, a Carmel fourth grader, first started getting a few dollars from his parents when he was four years old to help teach him about money.
Now, at nine, his allowance has increased a bit, but so have his responsibilities around the house. That includes chores he is paid for, but also things he has to do without getting money.
His parents, Sam and Mary Shaw, say the biggest reason for that is because he's part of the family.
"We all pitch in and try to do our part," said Sam.
That's a great way to get started, according to financial expert Elaine Bedel.
She is the president of Bedel Financial and has written a book, "Advice you never asked for, but wished you had."
Bedel hopes it helps parents navigate the important task of teaching kids how to manage money.
"I really think it's important to say, 'Here is what you get in return for actually doing something or creating something on your own,'" said Bedel.
Bedel says the age you start to give your child money depends on their development, and should come when they understand the responsibility.
Just like Aden's parents did for him, Bedel encourages parents to have their children spend, share and save.
"Many times you can have children set up three canisters: money I get to spend, money I am going to save for something in the future, and money I am going to share," said Elaine.
Bedel says one mistake parents make is trying to control what children spend their money on.
"It's probably better that they learn that, even though we want to stop them from making a mistake, they may learn the difference between buying jeans at $20 a pair, versus $100 a pair when they recognize how long it takes them to save," she said.
As Aden's parents have realized, your kids may learn more than you would ever expect. His mom Mary says now Aden even wants to sell his items to recoup some of his money.
"The hard part for me is when he has to have something and then two months later, he doesn't like them anymore and wants to move on so he wants to sell them, but he is learning to sell them too," said Mary.
There are some programs out there that introduce debit cards to kids, but Elaine Bedel warns against using them. She thinks cash in hand at a young age is more real to kids.
Also, if your kids don't have enough money saved for something, don't give kids an advance on their allowance. Bedel says that sends them the wrong idea about saving, spending and making money.
CNN: Teaching kids about money
Forbes: Money and kids
