Why Give Allowances For Kids And The Number One Thing To Not Do For This
Share This Post
Use the links above to share or bookmark this post.
Parents want the best for their children without a doubt. In the GFC (Global Financial Crisis), this has been even more prominent for families and you want to ensure your family has enough money. The question is, how do you as parents make sure your children – who will probably face the same problems that we all experience now – come out on top?
There is no guarantee, but you can increase the likelihood that your kids will know what to do with their finances when they reach a crisis.
Now how do you do that? Your best tool of initially educating them is by giving them an allowance!
An allowance is a payment to your child every week so that they are given the responsibility and freedom to do as they wish with that small payment.
Why do we give our children an allowance? The basic reason for this is to teach them how to save, how to budget and spending wisely. Most of all, we are educating them the vital tool of budgeting. If your children decide to use all their allowance on comic books or a packet of potato chips, then let them be. What you need to do as a parent is to communicate with them that there is more to allowance than just instant satisfaction. If could be saving for something bigger such as a new looking sweater.
Allowance for kids educates them how to save and plan ahead which will be more beneficial to them later on. They could start looking to buy a car, or even a house one day.
The one thing never to do though is to negate your kids allowances when they are naughty. I will explain this further…
An allowance for your child is to teach them what happens in everyday life. As adults we receive a weekly payment for example. If we have not done well in our jobs for that week, we still get payed from our employers.
Children are going to misbehave sometimes – it’s in their DNA, but dont negate their allowance because of this. Use other ways to teach them a lesson.
Giving our children an allowance is so they can start budgeting, later on they may learn that it takes 15 weeks to save up for a trip to the snow fields with their friends. Let them experience this so they can learn what to do later on.
This tool of being able to budget and save that you instil in your children will be a valuable tool right through to their adult years.
At the end of the day, don’t be too strict on your children with allowances, make it fun, and always encourage them with what they can do with savings in the future.
Learn more about allowances for kids. Stop by the Teaching-Kids-About-Money.com site where you can find out all about teaching kids about money and what it can do for you.
Tags: allowance, allowances, budgeting, children, childrens money, family, finance, finances, home, kids, Kids and Teens, kids money, money, saving, teaching children about money, teaching kids about money, teenagers, teens
Posted by Darren Ho under family | Permalink