"Can I spend the money I got for my birthday?"

Dr. T's Rx:

In general, kids should be allowed to keep and spend the money they get as gifts. That's probably what the gift-giver would want, along with a report on what the kids bought. Nothing is less gratifying and more frustrating to a child than money that arrives in the mail and is promptly whisked away by Mom or Dad.

But it's understandable if you don't want your 5-year-old dropping $50 at the toy store. So Dr. T offers a multiple-choice answer, based on your child's age and the amount of the gift:

• One: Preschoolers are allowed to spend gifts of up to $20 (when accompanied by you, of course), which would buy a character Barbie doll or an action toy. Anything above that is saved for another day. Another option is to let the little ones spend cash gifts, while you save the checks.

• Two: Six to 12-year-olds, with more expensive tastes and a better-developed sense of how much things cost, get to spend gifts of up to $50, which might buy a new soccer bag or a baseball glove.

• Three: Teenagers have discretion over gifts of up to $100. Regardless of age, gifts over $100 demand some parental input. One dad whose son occasionally gets gifts of $200 from his grandmother requires that his son spend $50 to $100 on something he needs--a new winter jacket, for example. With an amount that large, gift-givers might consider consulting with you ahead of time to designate how the money should be spent.

  A word about gifts of money: They're both appropriate and appreciated. Dr. T doesn't know many children above the age of 5 or so who would turn up their noses at cash. In the words of one 6-year-old, "Money is importanter than toys. I can buy things with it."

  For very young children, checks aren't much fun because the kids can't play with them, spend them or cash them by themselves. Grandparents sending checks could also enclose a couple of crisp dollar bills.

  Dr. Tightwad Explains...

  ---

  

  ---

  Copyright ©1996, ProMotion, inc.
  www@acloserlook.com