So your kid wants to buy something special in a moderate price range, but doesn’t have the funds to cover it yet.
The preferred parental response? Wait until you’ve saved enough! You know, delayed gratification and all that.
But occasionally, you’re OK with floating a small short term loan. That is, as long as it’s formally tracked and repaid.
In fact, you’ll even charge a little “Bank of Mom/Dad” loan interest on top. That drives the point home that borrowing money isn’t free. It also discourages a cavalier attitude toward loans in the future.
Good learning opportunity. Good plan.
Maybe.
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