Allowance for kids is important because it is the only way to truly learn how to manage money as a child. The younger children are started and able to understand the concept, the better. Many times parent will discuss the topic and give some good advice but that is not the same as having to spend your own money.
The average adult learns all about managing money from the age of 18 or older, unless they had a job in high school. If that was parent subsidized then the lesson could not have been fully realized. It is not until mistakes are made and consequences felt that the lesson hits home.
The time to start an allowance is when a child is asking for money or asking questions about it. How much they receive will be a family decision. One way to decide is to give them the same amount as their age. It can also be decided by calculating the money they are given each week for the things they request.
It may not be the best idea to link allowance to chores. Household chores are the responsibility of each family member. There should still be consequences for not doing them. Kids have a tendency to ask how much a chore is worth. They may decide they can not do that particular chore since it is not worth much anyway.
The child and their parents must discuss what the allowance is used to buy. In this way, they will know that if they spend all their money, they cannot come back to their parents and ask for anything that was agreed upon to be paid for with their money. Some guidance will need to be given as far as how much to spend, save or share.
Lessons of how to manage and budget cash are difficult at any age. Some adults work on it for years and still struggle. Allowance for kids will give children a way to make it all habit and make it more likely for them to do what is necessary automatically.
Learning about this topic will be beneficial to your child. Giving your child an allowance with help them learn how to be financially responsible. Saving money is an important topic to learn about, you can find information at our website. Allowance For Kids