As responsible parents we provide for all our sons and daughters living requirements. Why is it important to give children’s allowance? It’s a priority to introduce this idea of money responsibility at an early age to our children so they can grasp the meaning of what value everything holds.
It’s easy in today’s society to just put everything on our credit cards or use what kids call “plastic” money. It’s not visual for them to see the exchange for goods sold. The idea of money grows on tree is something a child can imagine as everything seems to be paid for unconditionally. They have never had to work for anything gained. Once comprehension is possible for children we need to take the responsibility to educate them of how this society works.
Mums and dads need to explain the reason why they go to work to their children. Explaining to our children how we earn money and how this helps us buy and pay for the groceries and bills will help kids understand life a bit more. This early introduction to money will help our children avoid the poverty trap. Teaching children to live within their means will help stop them getting into the credit card debt lots of young adults struggle to repay. Living beyond our means is a problem in today’s society for many and it doesn’t matter where you come from. This is why it’s important for us to educate our children as early as possible. Wisdom is power.
As mums and dads we have the duty to our children to give them a true picture of our financials from the start. Parents should never try to be something they are not. This will only encourage children to live out of reality. Living within our means does not mean we have to tell our children they “can’t” have something but rather they can have it “later”.
Pocket money for kids should be given conditionally. Parents should provide guidelines on how this money is to be used. Allowance for kids can start any time a parent sees fit. School is a good time to introduce allowances. Children can enjoy learning how much lunch cost and if they can fit in desert too.
The initial lesson in giving pocket money for kids is so kids can see the real value in cash. How much is the lollipop compared to a toy car? Children can decide if the lollipop will make them happier than the toy car. A wrong decision will make them wiser the next time. These experiences in early life will only help children make better decisions in later life.
Give allowance for kids only when parents are certain their children can grasp what money is and why we need to be wise with it. Children’s allowance should enable parents to teach their kids about savings and spending. Parents should always assist their children make decision about their allowance spending by giving children limited choices. For example parents should ask their kids “Do you want to buy A or B or would you rather save C with your allowance this week.”
Start today to enhance your child’s financial future. Children’s Allowance Giving your child an allowance with help them learn how to be financially responsible. We need to do something today for our kids!