The Bank of Dad

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Should I charge my child interest when I lend?

The Bank of Dad

Eventually little Johnny or Janey is going to say "Dad! I need a loan." This is the time to use our coaching skills.
Loaning children money can be a great way to teach them about the costs, risks and work involved in borrowing. Starting in their teen years keep a Bank of Dad book. Mark down all loans and charge your little one interest: Many parents deposit the interest in their children's college funds.
Taking this step will teach your child the skills needed to responsibly handle borrowing.



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