The Opposite of Spoiled: Raising Kids Who Are Grounded, Generous, and Smart About Money

by Ron Lieber

Another tactic that encourages thrift, cuts down on endless nagging, and gives kids some sense of autonomy is the use of prepaid debit cards. These work particularly well during trips or in situations where parents are paying but want the kids to stick to a budget. Lori Embrey, a financial planner in Columbus, Ohio, wanted a ready answer for the chorus of “can I get this?” she feared she would hear on an endless loop when her family went to Disney World for a week. So each kid got a $100 prepaid card that they could use for anything beyond basic food and drinks, which were on Mom and Dad. She even devoted one piece of luggage to snacks and Ziploc bags, so they could choose to tote those around rather than paying $5 for Dippin’ Dots and the like. The combination of a strictly finite resource and the control built into having a card of one’s own practically forces a child to think about value and trade-offs. Still, it puts the kids in control, which makes them feel powerful. Even Embrey’s 5-year-old son totally got it; he thought hard about his purchases and didn’t pick his souvenirs until the last day of the trip. He also had enough left over for ice cream. Cards that we designate for a specific purpose can be useful budgeting tools even when we’re not on vacation or at an amusement park for the day. For instance, we can set up children who love games with a card loaded with a limited amount of allowance money for in-app purchases alone. Parents who want to pay for their ki...