7 Reasons of Giving Children Allowance
Children need to be taught everything, and handling money is not the least important thing of all. Happily, children are eager to be more grown-up than they can warrant for. They tend to see our adult life as far more versatile than theirs, packed with wonderful freedoms and perks that are unimaginable for them to have. As long as adults run their lives, restrict their access to things and events, restrain them from getting what they think they want, sometimes forcibly, they will be dreaming of growing up and taking over. Money is one of the basic factors of our existence, and shouldn’t be off limits for kids – on the contrary, money has so many life lessons for a child to learn, and an efficacious way to wean them into a more responsible living.
Money to be earned
Why not give your kid a regular small allowance that they know they have to earn? Let them help in cleaning the house, buying grocery, mowing the lawn, doing any odd jobs that crop up not just now and again, but on the regular basis – and get money against it. So they learn to realize that money doesn’t grow on trees and it requires effort to have it. They get to understand they will need to have a job, and that the money means not only pleasures, but responsibilities.
Money to be saved
Children should understand that they have to fall back on their allowances for most of the things they need. To fully recognize the real value of money they need to feel that they are completely dependent on their pocket sum. When they want to purchase something that exceeds the sum, they must develop the understanding that if they start saving, they will be able to handle a larger sum than they have gotten accustomed to. It may take a little pressure, but it will also help to cut down the spending that is too hasty.
Money is responsibility
Odds are the kid begins to burn money on what is actually not so necessary for them. When you pay out of your pocket you control what you buy and what you don’t, but the kid doesn’t have this habit. As he or she begins to need more money, but they know they can’t go running to you for a limitless supply, it dawns on them gradually that they either work more or think more carefully what they purchase. It is the first stage of money management, and you won’t get them round to it by checking their buys yourself. Thus they develop a mature approach to money.
Money to be stretched over a set time
When you’ve settled into the pocket money arrangement, better have everything fixed beforehand. As the kid gets his/her assignment, he/she ought to be told the amount of money it will bring, and, what’s more, the period which the money is to cover. Say, the money should last them a week. First they will splurge it on the first day, but when they see that no further money is forthcoming, they will become wiser about it. This understanding will bring on thinking over their expenses and accounting for these to themselves.
Money to be counted
Discuss with other family members the amount of allowance for the kid per week or per month. It is a tricky question including such considerations as the child’s age and main needs. The important thing is not to give too much money so that he or she will have the necessity to control the allowance right from the start. On the other hand, if you feel they really need or deserve a little more money, give it to them. Don’t forget that you can hand out bonuses now and then to show them you appreciate their help. It may prove a great incentive for the kid to do more duties.
Money for wants and money for needs
Having got a fixed cash allowance and a period for spending it, the child will gradually begin to understand the difference between what he really needs and what he wants to have for less important reasons. Encourage him/her to write out lists of things he/she means to buy, assess the necessary sum, and prioritize the list. Let him/her get a deeper understanding of the needs, deciding which items can wait and which may be not so needful after all. That is what sets them an excellent example for their grown-up life and protect them from having troubles over their finance management.
Money has value
No-one really values what they get easily, and this goes even more for children. When money flows in freely, there is no way the kid will start accounting for it or understand what is a decent purchase and what is chasing whims. It is an essential parental duty to teach the kids money’s worth. Therefore, don’t let your child get as much as he/she wants and whenever he/she wants it; money should come in with strings attached. There will be times when you can pamper them, but it should be regarded as a special occasion. Knowing the value of money and being able to manage their small allowances is a lesson they will grow to appreciate.
So, having pocket money is the kid’s way to grow up to be responsible for their expenses. Controlled wisely and not given too freely, children’s allowances help them grow up properly without undue stress and save them financial troubles in future.
