Teaching our children how to handle money begins in the home. A new study shows that the majority of teens prefer to learn through experience rather than education, but are they being heard?

New London, WI (June 4, 2008) - Everyone has their own formula for what helps them learn, the most universal being experience. When you fall down, you get back up. Then you keep going while reminding yourself that you shouldn't make that same mistake twice. Some of those falls may be worse than others, but the lesson is the same. So why shouldn't that apply to financial education?

A recent survey released by The Charles Schwab Corporation has shown that teens want to take on the responsibility of learning first hand. The survey, which states that around two-thirds (64%) of teens would prefer to be guided in the ways of money through experience, is a new stepping stone in convincing parents that they need to teach their children the important basics before they leave the home.

The author of "The No-Cash Allowance", a Mom's Choice Awards® Gold Recipient, Lynne Finch shares her thoughts on the topic, "Schools can’t teach real money management because they can’t provide money, hence real experience. Only parents can do that." Also adding that, "Parents know that kids will make mistakes while learning to walk or ride a bicycle, yet they don’t want their kids to make mistakes with money. This results in parents retaining control, telling and directing, not realizing that they are depriving kids of the chance to make their own decisions and learn from the results."

The No-Cash Allowance: A Practical for Teaching Your Children How to Manage Money describes a proven method of teaching children how to manage money using cash and cashless transactions. This day-to-day money management
experience includes activities that enable children to learn about debit card spending, ATMs, electronic transfers and credit spending. Activities and concepts are included for children from pre-school through high school.

The no-cash allowance is a money management system in which a child controls all funds received from parents through a simple written account. Adults act as bankers and the child as account owner. Using this system, children and their parents can develop spending plans that transfer control of certain expenses from parent to child. Money used for this plan is money that a parent would already be spending on the child anyway.

The No-Cash Allowance is based on the author’s experience creating such a system for her two daughters who are now capable and confident personal money managers as adults. Anecdotes about the family’s experience offer insight about how the system works and the daughters’ comments from an adult viewpoint about the no-cash allowance provide the conclusion of the book.

The 120-page book, with bibliography and index, is illustrated with clever piggybank drawings created by Chicago artist, George Eckart, who also designed the cover. Charts and illustrations explain the concepts of money as they apply to teaching children. Sample account pages show how the no-cash allowance system can be used for all types money that moves in and out of the child’s home account.

"It does not require financial expertise but rather the willingness to give control and responsibility for money to the child." said Lynne, when asked to comment about her no-cash system, "In this system a child control all funds received from parents through a written credit-type account with adults acting as bankers. The account balance shows the amount of money or credit available to the child. A no-cash allowance gives kids a “big picture” view of their money and shows that each decision affects the balance."