Teaching financial responsibility to children is important, and one of the best ways to do that is to set up an allowance. It helps them understand money management in an effective manner. Right from buying their favorite toy to saving up to buy their dad golf accessories using the GolfNow.com coupons – kids can use their allowance money for many things.
A lot of experts hold the belief that children should be given allowance starting as early as 10 years. So how much allowance should you give your children? Let’s find out in the following article…
1. Form a Budget
Before you go ahead and create an agreement with your kids on how much allowance you will be setting up for them, form a budget. This helps you know beforehand how much money you will be able to give them every Monday or any day of the week you choose. As a parent, it will be your responsibility to give them their allowance on time and live up to your promise.
2. Decide on Chores
Talk to your children and decide if you want them to perform certain weekly chores in order to get the allowance. It’s completely up to you whether or not you base the allowance amount on the chores you give them. In case you require your child to do chores for receiving money, then explain this to him or her so that they know that their hard work is being rewarded.
3. Decide on How the Allowance Will be Used
While you want your child to have the freedom to use their allowance to buy what they want, you can also have a savings account set up for them. Having a savings account will teach your kid the overall importance of saving money. For instance, when you’re shopping online for a sporting gift for your husband, you would want to get a discount using something like the GolfNow.com promo, because you ultimately want to save money. Similarly, your children should also understand how to save the money they get so that they can make better financial decisions in the future.
4. Give Separate Clothing Allowance
If your son or daughter is a teenager, then chances are that they want to spend money on clothes. This is an addition to the weekly allowance you decide for them. When and if you decide to give a clothing allowance, make it quarterly so that you can set a budget for the clothes shopping. This will make your kids better at money management, and they will realize that if they put all their clothing allowance in buying one expensive shirt, they’ll have to make sacrifices for other clothing articles.
By giving your children an allowance you’re basically giving them the freedom to make financial decisions at an early age. This will help them to learn how far they can stretch their dollar amount. Just see to it that you live up to your promise and give the allowance on time because if you don’t, it can create a negative impression on them.
Image credit: Hobbies on a Budget