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Kid's allowances
Are you giving your children an allowance? You might want to think about doing
so: this is if you have the financial capacity to afford giving allowances. If
you do, this will teach your child how to handle money, how to make decisions
with money when they are young so that they will be
better prepared to make money decisions when they are older. So many adults
don't know how to manage their money and stay so much in debt and sometimes it
gets beyond their control and they are subject to losing all they have worked
for, so perhaps you can avoid that happening to your
child later in life.
Deciding how much allowance to give a child is of course a decision depending
on the individual family income plus you'll need to decide if you are going to
pay for necessities or give him extra to do so and make decisions or just a set
amount for extras he might need.
He might have a certain item that he wants such as a video that costs maybe less
than twenty dollars, teach him how to set up a budget, say he gets five dollars
a week allowance, let him save one dollar a week till he can afford the video
of his choice.
This way he can learn the value of budgeting his money and also have a goal and
learn to meet his goals. He might want to open a special bank account to be able
to save a portion of his allowance and you might also think about when he reaches
his goal to have a little family celebration to show how very proud you are of
him.
You might even have your child sit down and write down what he thinks his allowance
should be and also give you ideas on what he is willing to do daily or weekly
to achieve your paying him this amount. Of course the amount would need to be
agreed upon and of course he will surely want more than you'll want to pay, but
discussing this together you can decide on a correct amount for you both. Sometimes
this will be a method for raising his allowance, and it will show that he realizes
that to earn more he'll need to accomplish more, a great lesson that will be used
throughout his life.
Even suggest if he wants to make more money than his allowance that he would be
allowed to perhaps cut grass for a neighbor regularly. He will most likely not
necessarily need an increase in his allowance but be helped to spend what he is
already receiving wiser.
There are so many chores you can think of when determining what your child will
do for an allowance and naturally this depends on the age of the child. But remember
the lessons you will be teaching and the lessons learned will be well
worth the expense and the effort. Think of the time you'll spend together planning
the chores, your checking on the chores being done: it should bring you and child
closer.
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