Allowances form the beginnings for most kids in learning to deal with money. Its critical the allowance is set up as an ongoing process for earning money, not a method to demonstrate love or to reward kids for actions that are naturally expected in a family unit. Here are some guidelines offered by leading experts to help teach kids how to handle money on a day-to-day basis.
Experts say most 4 year-olds are ready and eager to learn about money and how things are bought and sold. You can start to educate your child by having them hand the clerk the money when you make a purchase or look for the purchase amount on the product. By the time they are six, a regular weekly allowance can begin. At the age of seven, most kids can be competent at handling small amounts of money in the from of an allowance, and special monies earned for specific chores, which are not part of their normal chore routine.
Each child should understand why she is receiving an allowance and what expenditures it’s intended to cover. If you’ve decided to pay an allowance to your children because they are members of the family explain this philosophy to them. Remind them of the general responsibilities they have as members of the family for which they do not receive an allowance. In deciding guidelines for giving allowances, here are some tips:
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Allowances should be a set amount given every week as a way to share in the family resources. The amount should not relate to specific and
regular work done in the home. -
Additional funds can be given for special chores.
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When the allowance is first given, construct a list of chores. Present the list as something the child now will be expected to do regularly as a
member of the family and in return, they receive weekly funds so they can share in the family resources. The allowance is not directly traded for
specific chores. -
Make up a chore list and let your child choose which chores he would like to take on. You decide the number of chores, and he or she chooses
which chores. -
Praise your child regularly with hugs and kisses for staying on track.
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Do not pay children for good grades.
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Do not pay children for doing their homework.
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Increase their allowance as they age and their needs change.
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Offer to share the expense of more costly items don’t make their spending and saving goals too far out of their reach.
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Pay regularly
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Do not use an allowance as leverage
It’s crucial to help kids see earning an allowance, saving and spending as a positive experience. It can be a great virtue booster to teach responsibility, accountability and other virtues like generosity and caring for others. Money is a tool, and if used wisely and respectfully can enhance even a young child’s life.
