You may be wondering how to use a children’s allowance to the best use for your kids? As a parent, I know how much of a hassle it can be when kids ask you to buy them the latest toy or fad. A big majority of the time I just give in and purchase the item they are want. I’ve been thinking, I’m currently give my child an allowance, how come it is all gone so that I have to go buying everything for them?
So what I do is search deeper in the situation. I ask my son what he has spent on the children’s allowance I give to him weekly? He tells me that he has already used in the school canteen to buy snacks everyday and by the time the weekend arrives, he has no more money to spend on.
I’ve figured out that I have only been giving a kids allowance because I thought that was the right thing to do, but not knowing really the reason I kept on doing this. As I researched more, I found that allowances for kids is used so they can learn how to be financially responsible. I’ve just failed that test by not giving any guidance to my son about what to do with his pocket money.
I am now having weekly meetings at a dining table in regards to allowances for kids. On Mondays of each week, we create a weekly budget and allocate part of the money to saving and the other part to spending. I would highly suggest saving at least 10% of the pocket money in the bank.
Remember to always talk to your child about what they want to save up for so they have a goal in mind? If it’s something that takes about ten weeks to save on 10% of savings allocated, you can advise them that if they want the skateboard quicker, they can put more of their pocket money into their savings account in the bank.
Try this tactic with allowances for kids and you will soon see your child wanting to save more with their money so they can reach an end goal. Once they have reached this, they will feel more proud of what they have achieved then if you had bought it for them instead.
Another tip you could use is say to child if they save $100 in their savings account, you’ll match that amount when they reach it. This will give them more incentive to save, rather than spend their money.
See if you can make a children’s allowance fun so your child will love learning about money topics such as saving, earning, budgeting and how to use their pocket money efficiently. They will learn good money habits which will make them more financial responsible later on and will give them a head start in how to deal with money properly.
Allowance For Kids Let’s begin and invest in our children’s lives. Kids learning about money should be enjoyable and make sure you set goals for them. Teaching kids to save money is challenging and enjoyable for your child.