An allowance for kids is a great way to learn about how to budget money. Parents usually take the time to answer questions and talk a bit about how money should be handled, but it is all theoretical without actual money to use that information on. A child will learn through experimenting and experience with their own money.
Knowing how to save money and being responsible with what is spent is a lesson many do not learn until well into adulthood. This is learned from being thrown into the fire of life by their parents and told now it is their turn to take care of their financial needs. Of course this leads to lots of calls for help until they get it.
Once a child is asking for money and shows an interest in spending their own money, it is time to consider giving them an allowance. The amount given can be determined by figuring out how much is issued to them for all the things they ask for each week. Another way to determine the amount is to match their age, a dollar per year.
It may not be the best idea to link allowance to chores. Household chores are the responsibility of each family member. There should still be consequences for not doing them. Kids have a tendency to ask how much a chore is worth. They may decide they can not do that particular chore since it is not worth much anyway.
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.
Lessons of how to manage and budget cash are difficult at any age. Some adults work on it for years and still struggle. Allowance for kids will give children a way to make it all habit and make it more likely for them to do what is necessary automatically.
Allowance Charts For Kids Make it a responsibility with educating your children about money. Let’s begin and invest in our children’s lives.Let’s begin and invest in our children’s lives. Let’s begin and invest in our children’s lives.