Should I Give an Allowance?

Children start earning money from an allowance at home before they ever get a job. Not all parents, however, agree that giving children a regular allowance is a good idea. Consider some ways to decide whether or not to give an allowance to your children.

An allowance used to be fifty cents a week. That was a long time ago. Now, an allowance can be as much as five or ten dollars a week. It seems like a small amount, but if you have more than one or two kids, it can add up rather quickly.

Money that children earn because of completing household chores is different from the money they receive as part of a weekly allowance. An allowance should be used primarily in an effort to teach financial responsibility. Children will soon find that saving or putting together their money will allow them to purchase more, even if they choose to spend their allowance on candy and food.

Allowance is based on parental income and the age of the child. If you are struggling to make ends meet, the allowance may have to wait, or it can be small until you can afford for it to be more. When a child asks why they are getting the money, say that it is because they have the privilege of being your son or daughter.

Wait to give an allowance to children until they are able to comprehend the concept of money and how it is to be used. You might choose to wait until their school discusses money and then use an allowance in conjunction with what they have been learning in their class.

Even if kids really don't show a desire to buy anything in particular, providing them with an allowance will help get them accustomed to using money. Use the allowance you give to teach kids the importance of saving. You can also take advantage of opportunities that arise to explain the prices of things they want and how saving up will let them be able to buy what they want.

If children decide they want to save their money in order to buy something, they will be excited to get their allowance and add to their savings until they have enough. They may even decide to just continue saving instead of purchasing the item. Either way, they will have learned a very important life lesson about delayed gratification and its benefits.

Receiving a weekly allowance, kids will learn to have a realistic and healthy attitude towards money. By the time kids are making money from jobs they do for you at home, they will have already developed saving habits and will know how to keep themselves from just blowing their money pointlessly.

There is nothing wrong with giving a child an allowance each week or each month. The money is theirs, but it is the parents' job to help them handle it with care. They will make mistakes, but there is time to correct these before they become responsible for themselves.

Should I Give an Allowance?

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