Teaching Your Children About Using Their Kids Allowance
Teaching Your Children About Using Their Kids Allowance
Any adult who effectively manages their money will most likely have learned how to do this when they were young. These lessons should be taught as early as possible and one of the best tools that any parent can use in teaching their children effective money-management will be the kids allowance.
When issuing out and allowance towards your children it is first very important for you to think about how much you are going to pay to them and at what age you would do this. In most cases parents will begin to increase the amount of the allowance as their children begin to get older.
It is very important that you teach your children the value of actually working for their money and therefore their allowance should not come for free. You should assign specific chores that they actually need to do if they want to get their allowance first. You might also want to think about providing them with the opportunity to do more work to earn more money.
As mentioned, you need to combine all of this with teaching your children about money management. Talk to them about how to save effectively and that their children's allowance shouldn't simply be there to spending. If they have a specific item that they want to purchase you should discuss with them the idea of saving part of their allowance to achieve this goal.
You should certainly purchase them a piggy bank for them to keep all of the money that they have in. Ideally, the piggy bank that you purchase should have a number of different compartments. These will refer to money that they can save, spend, donate, and invest. As such, by providing them with this piggy bank you would give them a great deal of freedom over what they want to do with their money and where it should be placed.
Make sure that your kids are responsible for covering the costs of various items that they want. If they want to purchase something that make them do this out of the money that they have saved. This will teach them the value of money and they will begin to learn the difference between needs and wants.
Allowance for kids is a great tool for teaching children about money.