Parenting --Teens/Raising money smart teens


I'm a freelance writer based in India and wanted a few suggestions from Mr James Windell about raising money smart kids, who understand the value of money. I'm working on an article on the same topic for an up market parenting magazine in India.My question is how do we, as parents, teach children how to save and handle money effectively, so that they grow into money smart adults.Thank you.

Hello Arundhati,
Here are some suggestions for helping children to grow up money smart:
1. Give them responsibility for money, saving, and purchasing at a young age. For instance, they could get an allowance, but they would have to use the allowance for some of the things they desire to buy. A child who wanted to buy a particular toy could be told he would have to buy it from his allowance. Then, he could be helped to understand how much he would have to save in order to purchase it. As children get older, they might get more allowance, but the number of things they would be required to buy would also increase.

2. They should be encouraged to save money in other ways as well. For example, children should be encouraged to save money from every allowance or every amount of money they earn. To provide an incentive to save, a parent could promise a certain amount of money for every dollar earned. For instance, for every dollar a child saved and put in a bank account, the parent would contribute another dollar. Children can thus see their savings grow rapidly.

3. Of course, as children get older, they should be encouraged to work. The best incentive is to require them to pay for some of their own expenses (clothes and entertainment, for example) as they become adolescents. It is not an incentive for children to be given everything they want.

These are some ideas. Good luck with your article.

James Windell

Parenting --Teens

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James Windell


I am a parent trainer, psychotherapist, and author specializing in parenting issues.During the past 40 years I`ve worked with parents with discipline problems and challenging children. I give frequent lectures and workshops related to discipline, social skills, and aggressive children. I consult with various agencies and schools where there are child behavior problems. I am listed in the American Psychological Associations` media panel as an expert on parenting and am frequently quoted in leading magazines and newspapers.


I have worked in a juvenile court as a clinical psychologist and as a psychotherapist in private practice. In the Oakland County (MI) Juvenile Court, I developed an award-winning parent training program for parents of adolescent delinquents. In addition I have done group therapy with adolescent delinquents using a social skills-building model. I have consulted with courts, schools, churches, preschools, and domestic violence shelters in areas of parenting.

I received my BA with a major in Psychology in 1963 from Wayne State University. I got my MA in Clinical Psychology from Oakland University in 1972.

I am a member of the American Psychological Association and the Michigan Psychological Association. I have written pamplets, newspaper articles, and professional journal articles. I have been the Coping With Kids columnist for several newspapers for 26 years, and my columns appear weekly in the Staten Island Advance. I have been the author or co-author of 16 books. My books include, 8 WEEKS to A WELL-BEHAVED CHILD, CHILDREN WHO SAY NO WHEN YOU WANT THEM TO SAY YES, 6 STEPS TO AN EMOTIONALLY INTELLIGENT TEENAGER, and THE FATHERSTYLE ADVANTAGE. My most recent parenting book (2012) is THE EVETYTHING CHILD PSYCHOLOGY AND DEVELOPMENT BOOK. I have appeared on over 180 radio and TV shows related to my books and parenting. For more information about me, my books and columns, go to my website at

I have an M.A. in Clinical Psychology from Oakland University.

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