I really can't understand the mentality of hiding financial information from your kids. I learned about budgeting and how to allocate your money at the same time I learned about what money was; the two concepts were inseparable for me. My parents always shared their thought processes when they would decide to spend money on things. They showed me how they were saving for retirement, and what things they were considering when deciding how much to save.

We would often have family budget meetings, where we could all make our cases as to why we should spend more on one thing than another. Of course, my parents always had the final say, but they would listen to me and explain why they made the decisions they did (sorry, your sister's braces are a higher priority than your PowerWheel car).

Because of this early exposure, I never had the same financial problems my friends did, even when I was a very poor student and recent grad. I never accumulated credit card debt, nor did I buy a car that was too expensive for my budget. I always saved for retirement, starting with my first job. Budgeting and money management is just second nature to me.

I can't think of a single argument as to why you would want to hide this valuable learning experience from your kids.