How to track my kid's money?

[Liz]

On Mon, 1 Oct 2012 11:02:21 +0200
Davide Imbeni <davide.imbeni at gmail.com> wrote:

> I have the exact same use case :-)
> I solve it with a liability account, as if I had a debt with my kids.
> Whenever their grandparents give them cash gifts, I get the cash in my
> pocket and increase my debt towards them.
> When they'll be old enough to need an allowance, I guess I will start
> increasing my debt weekly (from expenses->Children allowance TO
> Liabilities->Children debt), and decrease it whenever I actually give
> them cash (Assets->Cash in my pocket TO Liabilities->Children debt)
> I even got as far as allowing a small interest rate for the money they
> "lend" to me...

If you physically have the cash, then how will they learn to handle its
use?
I do recall loaning my mother cash from my personal stash, and
sometimes she didn't pay it back, so some accounting there would have
helped both parties.