Teaching Children About Money
Teach your children about money at an early age by giving an allowance. Good saving habits created early in life will have a big payback later on.
An allowance can teach children about the value of money. With guidance, the young can learn about expenses and how to be a wise consumer. An allowance is also a useful vehicle for opening a savings account. And don’t be afraid to start your child with an allowance early on; even preschoolers can benefit.
How Much Should I Give? How much you give depends on the age of the child and what you can afford. Maybe you can only part with $1 a week. Another rule of thumb is to give $1 times the age of the child. So if your daughter is 10 years old, she would receive an allowance of $10.00. It’s also a good idea to increase the allowance, as your child gets older.
Introduce Expenses: An allowance enables a child to learn financial responsibility. Small children may use their allowance for toys or candy. Meanwhile, teenagers may choose to purchase clothes, music, and entertainment.
Learning Consumerism: This is an important lesson for a child. Take the time to teach your offspring how to compare prices. Look at packaging, different and different sizes for the best value.
Create A Savings Account: By opening a savings account, your child can learn not to spend all of his or her allowance. It’s a good idea to have your children save a certain portion of their allowance each week.
Should An Allowance Be Tied In With Chores? Several experts say that parents should avoid paying their children an allowance for doing routine household chores. However, it is acceptable to given kids extra money for doing extra chores such as washing the car. All experts agree that you should never withhold an allowance as punishment.