When's the right time to cut your children off financially? Now, says personal finance expert Suze Orman.
"Cut your kids off as soon as you possibly can," Orman said at Miami's eMerge conference in June. "The sooner the better because otherwise they become financially dependent upon you, and the older they get, the harder it is for them to be cut off."
Orman, a best-selling author and former CNBC host, says this kind of financial dependency can start with something as small as giving your child an allowance. That's because an allowance can lead kids to assume they deserve handouts.
"Have you ever even asked them the question, 'Why do you get an allowance, my child?'" she asks. Their answers, Orman says, won't cut it.
"'Because I was born,'" she suggests a child might say. Or, "'because Joey gets an allowance.'"
Help them become independent instead. "Your kids need to work for money," says Orman.