More Than Just an Allowance
Allowance. It’s a popular topic amongst parents. Should you give an allowance? What age should you start? Do you make rules around what your kids can do with their money? Are their chores attached?
While there’s a lot to consider when you’re considering giving your child an allowance, there’s also a lot for your children to gain, and we’re not just talking about the money.
The start of financial education. Giving your child an allowance is the beginning of giving them the responsibility of money. Making rules around how your children can spend their allowance is vital. So, start off with some regulations around spending and you’ll make allowance a learning experience that breeds financial responsibility versus a spending free-for-all.
Give allowance. Give to others. Many parents today are concerned about raising children who understand the importance of giving back to the community, and those who are less fortunate. Consider giving your child a rule that a certain percentage of their allowance must be given to a cause of their own choosing. This is not about the amount of money that’s given, so much as it is about the act of giving.
Chores & more. Every parent is readying their child to one day become independent. Working for a living is part of this independence. Attaching chores to allowance is a smart way to help your children make the connection between working and being compensated for their work. Make sure to make sure the chore is age-appropriate and commensurate with the child’s abilities.</>
Earning more than an allowance. While allowance is one way to teach kids about responsible spending and saving, you can also offer a way for them to make more than just their allowance by encouraging them to propose a project they’d like to do in your household. This offers a way to connect motivation to reward.
Allowance doesn’t only have to be about getting paid for kids. You can use this opportunity to teach your children about money management and build their experience.