Why Allowance For Kids Is Important
Why Allowance For Kids Is Important
Allowance for kids is important because it is the only way to truly learn how to manage money as a child. The younger children are started and able to understand the concept, the better. Many times parent will discuss the topic and give some good advice but that is not the same as having to spend your own money.
The average adult learns all about managing money from the age of 18 or older, unless they had a job in high school. If that was parent subsidized then the lesson could not have been fully realized. It is not until mistakes are made and consequences felt that the lesson hits home.
The time to start an allowance is when a child is asking for money or asking questions about it. How much they receive will be a family decision. One way to decide is to give them the same amount as their age. It can also be decided by calculating the money they are given each week for the things they request.
Giving allowance in exchange for doing chores is not considered a good idea. Imagine a child deciding that since they got money for their birthday, they can afford to skip a week or two of chores. Chores are really a part of working together as a family to care for the home and should remain that way.
There will need to be an agreement made about what their allowance is spent on. The idea is to minimize what it is they are asking their parents for and to learn to budget what they have. Make sure what they receive is enough to cover their purchases. As direction for managing what they have, go over saving money, spending money and sharing money. Be an example with this concept. They should spend on their agreed upon items, save for those that cost more and sharing through giving.
Allowance for kids is a great way to learn money management from a young age. Do not wait until they are teenagers to start instilling these habits. There are lots of adults that did not begin to learn until they were on their own and that is simply too late. Kids Learn Budgeting With Allowance For Kids Responsibility Taught By A Children's Allowance Finding A Good Rate For A Children's Allowance Financial Literacy For Kids For A Better Future Online Financial Literacy For Kids A Better Future For Children Through Financial Literacy For Kids Caring for Children How Can Kids Make Money How Kids Can Make Money Ways How Kids Can Make Money Simple Ways How Kids Can Make Money How To Make Money Fast For Kids Find Out How To Make Money Fast For Kids