Raising a Rothschild

When we walk our children to the chuppah we pray that they will build a true Jewish home. And for that home to succeed it has to be built not only on a sound Torah base but also on a sound financial base. However the sad fact is that many adults have never been taught even basic skills such as how to manage a budget or balance a checkbook. Too often a newly married couple is thrown unequipped into the financial maelstrom and gets severely battered.

There are organizations in the frum community that are working hard to educate people about finances. But if these skills can be taught earlier — before marriage — a lot of heartache can be saved. So how can we ensure that our kids get a sound grasp of money matters before we send them out into the world to fend for themselves?

Burning a Hole in Their Pocket

One way to teach kids about managing money is to give them some money of their own to manage. Allowances have always been a thorny issue. To give or not to give how much at what age; the questions are endless. Some people prefer not to give a regular allowance but rather to dole out cash on occasion as the need — or want — arises. The problem is that it’s often difficult to distinguish between a desire and a real need and it can get very hard to say no. Plus this method does not teach kids how to be responsible with money. (It can also get very expensive!)

Most financial experts tend to be in favor of a regular allowance. Ezzie Goldish a financial consultant in the New York area maintains: “If a kid has a fixed amount every week he can figure out what he can buy and he knows that if he blows it he’s stuck. That’s a valuable lesson for later on in life.”