Allowance Troubleshooter: 4 Common Problems with Kids' Allowance

Even with a good allowance system in place, issues can come up (like when your child insists he's not getting enough cash!). Here's how to handle four common problems, according to family finance expert Joline Godfrey, CEO of Independent Means, Inc.

By Nicole DeCoursy, ThreeJars.com

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Issue: Your Child Has Poor Spending Habits

Issue: As soon as she gets her allowance, your 11-year-old daughter spends all of it on candy. When you try to help her understand the consequences of her behavior, she says, "It's my money; I can do what I want with it."

How to deal: First, "let your kids know that their allowance isn't a salary or an entitlement," says Godfrey. Then hold your ground. Say, "No, honey, that's money that dad and I gave you to practice with so that when you do have your own money, you'll know how to manage it well." Plan with her how she will spend her money before you take her shopping.

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