Kids and their Allowance

by Gwen Tutor
(USA)

As a parent, you will eventually come to the point in which you have to decide whether or not it is appropriate to give your child an allowance. Many experts agree that it is considered productive to provide children with a certain amount of money in regular intervals, but there are some basic guidelines that these professionals agree on. The most important guideline when it comes to giving children money of their own is to ensure that it is given with the expectation that they are to learn basic money management and budgeting techniques. It is believed that by ensuring your children understand that they must appropriately manage the money that they are issued that they will make more financially sound choices when spending it.
 
It is considered to be beneficial to start children on an allowance between the ages of three and five. The reason being is that children typically start expressing the fact that they desire certain items at this time in their life. By incorporating an allowance, children will learn to link their wants with the available funds that they have. Determining an appropriate amount to provide to children may prove to be a very challenging task. Many parents will give standard amounts on a weekly basis, such as $1, $5, or $10. There are some that will provide a dollar per year of the child - like, a 9 year old will receive $9.00. There are many ways to determine an appropriate amount of money that your child should receive. Ultimately, be sure to provide enough - this means enough that can be saved, spent, and for financial mistakes.
 
When incorporating an allowance into a child's life, you must set specific guidelines on how that money will be spent. Many parents expect their child to budget for school lunches, shoes, special clothing, and similar products. There are many that will expect their child to pay for their own internet, games, or toys. When you provide the child with an allowance, you must be very clear about what it is that they will be expected to spend it on. Then, you should offer your child assistance in setting up a budget and a safe place to keep their money - like a piggy bank of some type. You should expect your child to overspend. This is a financial mistake that is best learned young.
 
Many families will base the allowance on the chores in the home. It is actually best, according to some professionals, to avoid doing this. The chores of the household teach the children that everyone must contribute to some degree to ensure the functionality of their household. It is a means of teaching children important life skills and cooperation with their family members. However, if there are large jobs in and around the home such as carpet shampooing, automobile detail, lawn care, gardening, and other tasks, it could be appropriate to link an allowance to those jobs. Furthermore, an allowance may be linked to academics. School is often considered to the be "job" that the child has, so this could be appropriate. You could request a weekly progress report from the child's teacher and provide certain amounts based on their overall performance. If it is time to provide your child with an allowance, you may follow these steps to ensure success in teaching money management to your kids.

Gwen Tutor is a writer for My Baby Bedding Shop and is the loving parent of two. One boy and one girl. Her children are all grown up now but she loves writing about children and giving tips on certain scenarios that parents are faced with along the way. Gwen sure hopes that you have found this article helpful. Gwen would like for you to check out her Baby Crib Bedding. She would also like for you to take a look at these Modern Baby Bedding.