Look, if you’re about to ask your parents for a really big loan (gift?) then you’d better buy up every copy of this book you can and burn the lot of them because you’re not going to like what I have to say next.

Parents, if you are reading this then don’t give them that loan (gift). It is OK not to mollycoddle them, to make them learn the value of money, to make them treat money with respect right from the word go. And just because you have lots doesn’t mean they are entitled to stand there with their hand out right from the day they get out of nappies.

I’m the world’s worst at this one but I am learning. There are various ways you can go from being utterly mean and not giving them a bean to being overly generous and giving them everything. Now, I was going to talk about setting budgets for children and setting up trust funds for them.

A monthly allowance is always a good idea as they then have to live within their means. It teaches them to budget and to scrimp and save at the end of the month – or halfway through it in most cases. When they first go off to uni is probably the best time to do this as they are also learning a whole new batch of things about being grown up – sex, drugs, staying out late, wrong sort of friends, binge drinking. Learning to balance their own books at the same time is good for them.

You can set aside lump sums for them as well so they can buy a house, business, decent car. If you administer it, then they can’t blow it on a plasma TV or a £600 designer handbag but only a sensible thing that they have to explain to you in some detail. And of course a trust fund for when you have shuffled off. Or of course let them have such a fund when they are of an age sensible enough to enjoy it without it diverting them from their education. Personally, I would give it to them after it would make any real difference to them; in effect after they have started to earn their own money in worthwhile amounts.

And for goodness’ sake don’t ever tell them they are getting a lump sum aged 25 or whatever you decide. Nothing demotivates a child more than thinking they’re coming into money. They’ll think they don’t have to make any effort. Let them think they’ll always be poor and watch them go.

And how do you set a good allowance figure? Only you can work it out for your child and it obviously varies depending on age but once they reach their teens it’s as well to thrash it out with them – a process sometimes of painful discussion (who said rows?). But make them argue every penny and justify it. It’ll make them value it when they get to spend it.