When I was a kid, (8, 9, 10, years old) the things I’d ask my parents for money for were to go buy a Slurpee or some candy at our local 7-Eleven. Eventually my asking got my mom to thinking an she instituted an allowance for me. When a kid has to spend their own money on the things they want they tend to think twice about exactly how they’re going to spend it.

I think I’ve come to the same point with my boys specifically my eldest son Michael who is eight. Except he’s not asking me for some spare change to run into a convenience store. He’s asking for “virtual” things, like apps for the iPad or credit on his Sony PlayStation account. Purchasing these things are fine, but he never sees the money used to buy these virtual items. It’s like there’s this thing called money and it’s floating somewhere in the ethos. I rarely spend hard cash when making purchases and I only go into a bank when absolutely necessary. The only time my son sees the actual green stuff is when I have to send him to school with money for something. All this virtual spending leaves many kids like my son with no concept of money or where it comes from. They see their parents pay for things with credit or debit cards and now even with their cell phones. My son knows how to use my iPhone to pay for my Vanilla Latte at Starbucks. This got me to thinking… With all this virtual spending going on, Is it harder to teach our kids about the value of a dollar because they never see it?

It is very important for me as a parent to teach my kids how to be responsible with their money. I don’t’ want them to be afraid of having it, earning, it, or spending it. I think the more comfortable they are with money, it will be easier for them to handle their finances when they become adults. However, with everything, it takes practice and good habits. Many parents are concerned about keeping their kids healthy and giving them good eating habits-which is extremely important, but I also thing good financial habits are also important and best instilled like healthy eating habits when they’re young.

I’ve come up with a few ideas to teach my son to spend his money wisely virtual or not. One of the ways is by using iTunes and Sony PlayStation network cards. That way he knows how much he has and if there is something big he wants and he doesn’t have enough he’ll have to save his allowance to in order to have more.

Which bring me to an allowance. Up until now he hasn’t had one. Let me back up, that’s not exactly true. Right before we moved to Miami and my husband began his two year tour in South Korea I was in the process of starting an allowance for Michael who was at the time six years old. I think we did it for about two weeks and then we moved and life has been sort of on hold for a lot of things…his allowance is just one of those things.

We’ll be moving in a couple of months and that is expensive. I think now is a good time as any to start teaching him about expenses and saving. I’ll do that with a weekly allowance and a chart where he will list his “wants” (all of his needs are taken care of course), “saving”, and a list for “helping”. Under the “wants” will be things like video games, toys, apps etc. Under the “saving” chart he’ll list wants he can’t yet afford, and under “helping” will be ways he can use his money to help others. Either in the form of donating a percentage to our Church, a charity, or even a bum on the street. I think with this my son will be well on his way to becoming a financially responsible and independent adult.

Article written using Genworth Financial Educational Resources. Opinions expressed are my own. For more information about financial services visit the Genworth Financial website.