subject: Why Give A Children's Allowance? [print this page] The age old question, how much do you give for your children's allowance? What this article will inform you as the parent is that a kids allowance is usually determined by a number of factors. There is no one factor that ultimately should set what the allowance for children should be, but hopefully after reading this, you should be able to make a more informed decision.
How much should you firstly give for a childrens allowance? My suggestion is that you start giving them a children's allowance when they are able to speak properly and actually know what money is. Four years old is the earliest I would suggest. The earlier start you give them a kids allowance, the earlier they will start to know what money can do for them. In the early stage of their lives - about 4 and upwards, I would use the rule of one dollar per age. So if they are 4 years, they would receive $4, if they are 6 years old, they receive $6. I will do this until they are 10 years old.
Allowance for kids is usually determined by the following factors.
Age:
Kids allowance depends obviously on how old they are. The older they are, the higher the allowance for children will be.
Family income:
These days, you will only be able to afford to give an allowance for children as long as you are not struggling with your family finances. One word of note here is that even if your family has a high wage, you shouldn't go spoiling your kids by giving your children allowance that is more than what they can handle. The whole reason for a children's allowance is so they understand how to become financially responsible.
What are other kids receiving as an allowance?
You could ask other parent's what their kids are receiving as a kids allowance. This will then give you a ball park figure that you can assess and analyse.
How many children do you have in your family?
The number of kids in your family will directly affect your budget, so it is just logical that a family with 5 kids will have less allowance for kids each than a family with only 1 child.
Now when kids grow older, their appetite for materialistic possessions will naturally increase as well. Instead of candy or toys, they will start wanting to buy more expensive clothes or the latest gadgets. When they are starting high school, maybe try them on an allowance of $15-$20. This will give them some flexibility to be able to save for something bigger.
An important point for giving an allowance for children is so they can start to learn to save and budget. I would highly recommend to them that they save at least ten percent of what they are given in a savings account. Describe to your child that saving is what will help them in their financial long-term goals.
Allowance for kids is also about budgeting big-time. When teaching them the concept of budgeting, it will also assist in their future financial well-being as well.
In conclusion, a childrens allowance should be a fun concept for your child. Allow them to make mistakes, but more importantly, show them how to correct their mistakes so that they are able to save and budget effectively. Giving your children allowance will give them practical experience with money which will give them a positive financial future.
by: Darren Ho
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