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Allowance For Kids?
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Teaching the value of money is crucial to many
parents but even more so to children. So many children do not understand the
concept of money management. When those same kids hit early adult years, they
are lost. For the most part they figure if they have money in their pockets than
they are in good shape. One of the greatest gifts you can give your child is the
knowledge of how to earn, budget and manage their finances.
Giving your child an allowance is a good way to teach them how to manage money.
Teaching money management to kids is an essential component of daily life to
assure that your child is ready for the financial world that they will soon
face.
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You must determine how the
allowance will be earned, distributed and used. Everyone has different ideas as
to how allowances should work. Obviously you must decide but below are a few
suggestions.
1. The path of least
resistance is to give your child an allowance and expect nothing in return. Some
parents feel that their child’s only job should be going to school and being a
kid. Hence they receive an allowance without earning it. That can work but you
will need to make sure they do some chores regardless and outside of allowance.
Children growing up with no responsibility and no obligations tend to carry that
attitude into their adult lives. Even if you firmly believe that a child’s life
should only be filled with fun and education, you will still want to make sure
they learn life is filled with responsibilities and everyone has them, with no
exceptions. They also need to learn how to budget their money by saving some and
spending the rest.
2. Some parents feel that nothing in this world is free and an allowance
should not be either. The child is required to complete certain chores in order
to earn their allowance. Very few children are not motivated by money.
Motivation is a good course in the direction of accomplishments. Children who
have their eye on a prize can ask the parents for possibility of earning extra
money but completing additional chores. This method can help the parents by
getting those odd jobs done around the house that are put off until last and can
teach the child the value of a job well done. If they do the job well, they get
paid.
3. Another option is the parent assigns each chore a specific amount of
money. Then the child is allowed to choose the chores that they want to
complete. The more chores they do the more money that they make. This method is
similar to real life in that those who work harder and longer typically make
more money. This method allows children to set goals and plan to achieve them.
Now that your child receives an allowance it is important to teach them how to
manage it. Incorporate teaching money management through allowances into
everyday life. Show them items that are similar to the one they want to purchase
that are on sale. Require them to leave the store and think about if they really
want that item. Don't let them take their allowance with them every time
they leave the house. There are many different tips to help your child manage
their money. The trick is to find what works for you and your child.
by Chris Lowrey
FamilyTimeCharm.com
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