Daniel Negreanu's Method for Teaching Kids About Money Management

Poker player Daniel Negreanu has shared his method of teaching children about money management. He suggests giving children aged five or six five dollars a week, with the condition that they keep a spending journal and allocate the money into three categories: spending, giving, and saving.

Jesse Martin, a regular at the WSOP, agrees with the idea but questions the amount of money and what children can buy with it. He suggests that the money should be used for small purchases like ice cream or gum from a vending machine.

Several other poker professionals have shared their thoughts on Negreanu's method. Fedor Holz suggests modifying the idea by deducting money for taxes, housing, and food to teach children about these expenses. Mike McDonald proposes a different approach to teaching taxes, suggesting taking more money than given to teach the concept of loss. Haralabos Voulgaris suggests annually taking 5% of children's savings to teach them about the difference between saving and investing. Ari Engel proposes adding 7% to children's savings annually to teach them about the value of investments.