An allowance doesn’t teach children how to manage money

WASHINGTON, D.C. » I went to live with my maternal grandmother, Big Mama, when I was 4. And at 4, I stepped into her financial class.

“Big Mama, can we go to McDonald’s?”

This question and every other similar request to buy me anything that wasn’t a necessity were met with a money lesson. Every. Single. Time.

That’s how I learned to be a good money manager. Big Mama talked incessantly about saving, spending wisely and staying out of debt.

I watched her manage on so little and still pay all her bills on time. Big Mama was so tight with her money that if she held a penny, Lincoln would scream.

Hands down, this woman taught me more about money management than any financial expert I’ve ever met or interviewed. And she did this without ever giving my siblings or me an allowance. Big Mama couldn’t afford to have us on her payroll.

The Color Of Money