Instructions to Educate your Kids about Utilizing Kids Allowance Successfully
An allowance for kids is a great way to learn about how to budget money. Parents usually take the time to answer questions and talk a bit about how money should be handled, but it is all theoretical without actual money to use that information on. A child will learn through experimenting and experience with their 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.
Once a child is asking for money and shows an interest in spending their own money, it is time to consider giving them an allowance. The amount given can be determined by figuring out how much is issued to them for all the things they ask for each week. Another way to determine the amount is to match their age, a dollar per year.
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.
There will need to be an agreement made about what their allowance is spent on. The idea is to minimize what it is they are asking their parents for and to learn to budget what they have. Make sure what they receive is enough to cover their purchases. As direction for managing what they have, go over saving money, spending money and sharing money. Be an example with this concept. They should spend on their agreed upon items, save for those that cost more and sharing through giving.
The whole point to having an allowance for kids is to help them to grow up and have the skills to be responsible with money. This is a skill that many adults are still trying to learn. It may be that no one took the time to instill good habits concerning it. Make sure your children get a head start.
Allowance for Kids is a topic that can taught easily and effectively. Teaching kids should be a fun activity. Children Pocket Money You can learn more about teaching kids about money at our site.
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