Which strategy is better?

[alastantiger]

Put these conditions in mind,
In the first scenario, it is a close condition where the parent intends to teach the child early how to manage money, and in the second scenario, the parent wants the child to learn from their own experience.

Understanding your children to know which strategy will best educate them is what's you'll need to know as a parent and not blindly following the society because they said the first experiment or the second one is better. We have children with different learning abilities and either case scenario might favour them hence you need to know what to use in teaching your children and making them because responsible individuals. What's more important is for your children to be able to handle life situations in the future hence you can try either scenario to see which one best teach them and when they learn then you continue. Exposing them to lots of money might be a risky move but all have their advantages and their disadvantages hence I won't say either is the best experiment to go with to teach them better.

[yudi09]

Talking about teaching financial intelligence to children, what do you think is the best practice to enforce this as a parent,
Scenario 1
Giving them enough money at a young age to see how well they will manage it.

Scenario 2
Not giving them enough money, so they can work for their own money.

Put these conditions in mind,
In the first scenario, it is a close condition where the parent intends to teach the child early how to manage money, and in the second scenario, the parent wants the child to learn from their own experience.

Before implementing the two scenarios, there are small things that need to be applied to children so that we know their character so that it is easier for parents to direct where they really are.

Starting with small things like their habits when tidying their rooms, their habits just before going to school are natural images that they have so that when they are taught about finance, as parents they already know what kind of business will suit them or what profession suits the child's character.
It is true that people's strategies are different and do not have to follow the two scenarios you mentioned.

[mindrust]

The kid needs to work in a real business to see how things in real life work. He should understand how hard it is to make money.

You might be a rich folk and it might be easy for you to print money with the clap of your hand but the kid shouldn’t get used to your habits right from the start.

He must understand that what you have now is a luxury which came with a price. It wasn’t free and if he doesn’t understand it fully, he will learn it by the hard way by losing all that wealth very quickly.

Just teach your kid how to run a business. Teach him tax laws and the rest will come naturally. If he is able to run a business successfully, that means he doesn’t need your guidance anymore.

[BITCOIN4X]

~Snip

Before implementing the two scenarios, there are small things that need to be applied to children so that we know their character so that it is easier for parents to direct where they really are.

Starting with small things like their habits when tidying their rooms, their habits just before going to school are natural images that they have so that when they are taught about finance, as parents they already know what kind of business will suit them or what profession suits the child's character.
It is true that people's strategies are different and do not have to follow the two scenarios you mentioned.

Some small things will mean a lot considering they are children. They have to learn to manage something simple even if it is not material, even if it is just making the bed. Pampering children will basically only make them dependent and make it difficult to achieve independence when they become adults, but educating them too hard is also not recommended. Some parents don't want their children to experience the same difficulties they had when they were small, so pampering their children within certain limits is allowed.

Not all children's wishes must be granted, this will shape them into independent individuals in the long term. Children should be able to be controlled, not the other way around, but it is people's job to teach them independence as early as possible. At some stage, they should also be taught to save, it is a good lesson for them.

[coolcoinz]

Best is to give them something to teach them how to manage and value money, but not overdo it. Giving a lot and nothing are both bad ideas that lead to problems.

A kid that gets everything from young age will feel like it's normal and will keep coming to you for money as an adult. If you don't give your children money they will become laughed at, unable to find their place among friends who have some money to spend. You don't want your kid to be always the poorest in the group, right?

Give them a little, make them work for it (good behavior, chores). Reward them, but just enough to make them save up and value every gift. If you give them too much they'll quickly lose interest with the things they buy, chase new things all the time.

[Fiatless]

Scenario 1
Giving them enough money at a young age to see how well they will manage it.

Scenario 2
Not giving them enough money, so they can work for their own money.

Using both strategies will be more effective. Giving your children money for them to keep or manage it is could build their ability to safe and not misuse money. With strict supervision, you can monitor how they are using the money.

The next pattern would instill the ability to seek means of making money themselves. Not giving them much money will make them take advantage of any viable opportunity to make money. Some rich parents send their children to work in places where they earn peanuts. The focus is not the money but the development of wealth creation skills.

[Fortify]

Talking about teaching financial intelligence to children, what do you think is the best practice to enforce this as a parent,
Scenario 1
Giving them enough money at a young age to see how well they will manage it.

Scenario 2
Not giving them enough money, so they can work for their own money.

Put these conditions in mind,
In the first scenario, it is a close condition where the parent intends to teach the child early how to manage money, and in the second scenario, the parent wants the child to learn from their own experience.

If only the world was so black and white, but it is not. You'll find that most parents have enough self awareness not to spoil their children too much growing up, but we all knew kids in school that probably received far too much. Then there are levels of wealth that can make it hard to distinguish, if your parents are barely scraping your family by on minimum wage jobs, then your luxuries might be a trip to McDonald's once a month. However some kids might have parents so rich that they live in a world that is so incomprehensible to the poorest family. It is a good idea to teach the value of money, rather than just letting kids have whatever they want, even if they are taught to mow the grass or wash the car to understand that life needs work.

[slapper]

Neither strategy works if the kid doesn’t understand why money matters to begin with. That’s the layer most parents skip. You can’t gamify financial literacy like it’s some mini-version of adulthood and expect it to land. It’s not about the amount. They’ll either hoard it, blow it, or fear it. What you’re really teaching is how money connects to self, to others, to power, to choice

Scenario 1 sounds generous but easily backfires. Give a child too much too early and you’re not teaching them money management - you’re teaching them artificial abundance. The issue is no stakes. No skin in the game. It’s not real to them. They know there's a safety net. You end up teaching controlled simulation, not emotional or practical consequence

Scenario 2, though, looks more “hard-earned” but it risks a different distortion. The child starts to link money to struggle. That’s dangerous. It breeds guilt, fear, or obsession. You’re no longer raising a financially literate huma. You’re raising someone who may equate self-worth with hustle and always feel behind

[passwordnow]

Spoiling them at a young age will make them feel entitled that they can get everything that they want. So, for me, it's the scenario 2 that is a better strategy.

Scenario 2
Not giving them enough money, so they can work for their own money.

Not spoiling them I think is the right term for this. But we shouldn't be giving them too much money because if they're going to need something, they know that they have to work for it and they won't get it on an instant because it will take time.

[nakamura12]

You could choose the plan A which is to determine how they will manage the money which is very useful in my opinion when they will earn through hard work but I would say that the best option is Plan B which the plan A is also in the plan B. The reason why I said that is that if you didn't give them enough money then they will surely think of different strategies, ways or options to manage their money since you didn't give them enough money. However, if you choose plan A then you should tell them what will happen if they didn't manage the funds well and what will happen if they won't earn their own money.

[skarais]

Scenario 2
Not giving them enough money, so they can work for their own money.

Since I was little until now, I was a child who was never spoiled with money by my parents. I demanded some things from my parents when I was a teenager, but they would not fulfill them, even if they were able to. I eventually realized that they did it for my own good, but as a normal child, I was certainly very disappointed when my wishes were not granted at that time.

I choose the second point as a good approach for my children now, they need to learn that not everything can be obtained easily. They need to know and learn and enjoy the results of their hard work with full happiness.

[tottong]

Since I was little until now, I was a child who was never spoiled with money by my parents. I demanded some things from my parents when I was a teenager, but they would not fulfill them, even if they were able to. I eventually realized that they did it for my own good, but as a normal child, I was certainly very disappointed when my wishes were not granted at that time.

I choose the second point as a good approach for my children now, they need to learn that not everything can be obtained easily. They need to know and learn and enjoy the results of their hard work with full happiness.

Lucky when you are not spoiled from childhood so that growing in the process of adulthood will provide a more independent life.
Parents must have a much better view of their children so that they try to do their best, even though sometimes we judge unfairly.
The process of living life is not easy and we need to be trained to adapt and by not being spoiled and following all desires will make our lives more independent.

The approach in the second point is indeed much better and I more choose that version to educate children because that way they can live much better for adjustment.
Achieving success with your own sweat is much more satisfying, even though sometimes we don't get great success like others.

[michellee]

I will give them money when they are ready to know the value so they can manage their money. I already explained them about saving, start from small amount and they like to save it in their piggy bank.

I want to be close condition with my children and teach many things that is necessary to them. We don't know what will happen when they are grow up so we need to prepare them to be ready with the future.

If they can manage their money with right, they will not waste their money by buying something that they don't need it. They will choose to save their money or by invest in something like Bitcoin.

[batang_bitcoin]

The kid needs to work in a real business to see how things in real life work. He should understand how hard it is to make money.

Most kids nowadays are spoonfed by their parents and I agree that a kid needs to work in a real deal business or employment so that they will know how the reality will set in earning money. Without the actual experience, they'd always think that they can spend it for anything they want if they didn't earned it themselves. While having a good minset is important and if that's how they think but they also need to understand the difficulties on how a person earns money and how they work hard for it.

[TheUltraElite]

Give them a budget on how they should spend and then make it a challenge to save part of it that you put in a piggy bank. At the same time teach the importance of saving and spending and how they need to be balanced. Both methods might need a bit of intermixing to see the best effects.

I dont expect them to work right out of their school days. So here teaching takes much importance like using the bus instead of the cab. Walking for short distances. Keeping a limit on the amount spent on snacks and fast food, encourage healthy eating and so on.

[knowngunman]

Each of these strategies works differently in different environments. In my place here, no one will take you serious as a parent when you give your children enough money to spend in order to monitor their financial habits. In fact, majority believe that such practice is the easiest way to spoil a child when it comes to financial lifestyle. There's a popular adage here that you should not give someone fish if you really want to help them, teach them how to catch a fish and that's what we believe in here. No parents will give you penny to spend and you'll be call to panel if you spend too much out from the money you work for on your own.

The second option has been the best and working strategy for us here. When you teach a child how to make money, teaching them how to manage it would become very easy simply because they know what it takes to get the money and won't be happy to see it finish. The first option might also work for some people but I don't really see it as effective here. It will probably give a child the mentality of entitlement expecting more money from their parents after spending the initial one given to them.

[DanWalker]

Using both strategies will be more effective. Giving your children money for them to keep or manage it is could build their ability to safe and not misuse money. With strict supervision, you can monitor how they are using the money.

The next pattern would instill the ability to seek means of making money themselves. Not giving them much money will make them take advantage of any viable opportunity to make money. Some rich parents send their children to work in places where they earn peanuts. The focus is not the money but the development of wealth creation skills.

Agreed, we should combine both for better results.

1. Give money to children and let them keep it but under their control, this will teach them the virtue that even if they have a lot of money, they should not waste it. Spend only when necessary and save even if they become rich later.

2. Letting children earn their own money not only helps them develop wealth-creating skills, but also helps them understand that earning money is not easy, the value of money, and helps them appreciate money more.

[Outhue]

Talking about teaching financial intelligence to children, what do you think is the best practice to enforce this as a parent,
Scenario 1
Giving them enough money at a young age to see how well they will manage it.

Scenario 2
Not giving them enough money, so they can work for their own money.

Put these conditions in mind,
In the first scenario, it is a close condition where the parent intends to teach the child early how to manage money, and in the second scenario, the parent wants the child to learn from their own experience.

Teach them to understand that rendering a service is the only way to get paid, I know someone who pays his 8 years old kid for house chores, under some conditions like if he clean the who place very well he will earn $2, this kid now have some good amount of money in the bank at a very small age, which is good because he won't grow up to depend on his parent like some 25years old doea today.

Both options you gave might work but not every effective like the example that I gave, if you give them money at a young age they will think the money is that easy to get, remember you are giving them for free.

This means you teaching them to rely on you for everything, I doubt they will manage it well, when something is free it will be handled in such manner because it is free.

Not giving them money might make them believe that you are not caring enough as a parent too, they might grow some thought against you, instead let them know why you doing things this way, still I believe you need to make them know that nothing comes for free in this world.

[Finestream]

Financial intelligence is making informed choices regarding your money and expenses, thus it’s more on how you manage your finances to avoid financial mishaps rather than making your own funds. So I would chose the first scenario.

However, it would be better to educate or teach your child first on how to budget and spend only on the necessary things, and ignore those not so important items to avoid overspending, before you decide to give him his money or allowance.

[Stella Mese]

The kid needs to work in a real business to see how things in real life work. He should understand how hard it is to make money.

Most kids nowadays are spoonfed by their parents and I agree that a kid needs to work in a real deal business or employment so that they will know how the reality will set in earning money. Without the actual experience, they'd always think that they can spend it for anything they want if they didn't earned it themselves. While having a good minset is important and if that's how they think but they also need to understand the difficulties on how a person earns money and how they work hard for it.

Of course, that is effective in implementing it from the beginning to children so that they know the difficulties in making money, because when children experience it themselves in running a business or other work, they will appreciate it when they get the money, so they will think more economically when they will use the money and spend it on something more useful, thus indirectly educating children to appreciate it more when they get money.