I was talking to a friend of mine recently about setting up an allowance program for her six-year-old daughter.  Six is the perfect age to get an allowance going.  Kids this age understand a lot about money and it’s time to start giving them some responsibility managing some so that they can begin to get into healthy habits.

“She’s not interested in money at all,” my friend told me.  “She doesn’t like to go shopping and never asks for anything.”

I was a little surprised since most of the six-year olds I know are pretty clear about what they want.  And then I glanced around their house.   Her daughter already had just about everything she could possibly want. 

“What happens when she wants a new webkinz?” I asked.

“Well, I’ll usually buy it for her.”

Hmmm, I thought.  No wonder she’s not interested in money; she doesn’t need any.   So I recommended that she stop buying everything for her daughter and give her a small weekly allowance.  That way, when her daughter eventually wanted something, she could buy it herself.   And if she spent all her money and wanted something else, she would be out of luck.    Advances are not an option.  That defeats the whole purpose.

I’m not sure I convinced my friend who, I think, feels the whole thing would be too much of a hassle.  Hmmm, again.  I wonder what kind of a hassle it might be to have to deal with a young adult who doesn’t know how to effectively manage her money?