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Thursday, Apr 24th

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Tips on money allowances for your kids

Allowance : Money Management Tips

As a business woman, you have to manage both your family and business. Sometimes it becomes difficult for you to spend time with your children’s and teach them financial responsibility. Allowance is the best tool for the parents to teach financial responsibility to their kids. Some of the lessons that can be taught to your kids through an allowance are decision-making, saving, planning, responsibility, sharing, and charity. Allowance is not money that is paid to the kids for doing some chores. They are expected to do some works without payment as a member of a family. Allowance is a responsibility of the parents to meet the family needs. The amount to be paid to your kids as an allowance depends on parent's income and child's age. It should be sufficient to meet the needs of children and not their wants. The benefit of allowance is that it helps the child to develop an independent thought.

Here are some allowance tips:

Teach humanitarianism at an early age: Some portion of child's allowance should be allocated to charity. Encourage your children to participate in toy drives, clothing, or canned goods for charities. Teach them to respond to natural disasters like earthquakes or hurricanes, outside the community, by donating some money to help. Creating a caring can is a great way to teach your children to save money. Ensure that your child puts some part of their allowance in the can. Make a rule that some part of the allowance should be put in the can, no matter how pressing the other financial needs are. Help your children to search their favourite institution and ask them to donate this money to the institution.

Teach them savings at an early age:
It is very important to keep something for the future. The allocations for both the savings and charity should be made before any optional spending takes place. Along with the saving for charity, you should encourage your child to save for the future. You should open a savings account for your children as soon as they are 8 years old.

Entrepreneurial spirit:
You should encourage your child to earn the required funds for their special goals. Avoid creating unnecessary jobs so that they can meet their goals. It's the same as giving them money. Let your children find a job on their own and make the offer. If the job meets the needs with a right price, hire them.

Avoid rewarding tangible gifts for their good behaviour: Don't reward your children with tangible gifts for their good behaviour as this leaves parents open for childish blackmail. Your approval and praising words are sufficient. As a mother you won't like to hear from your kids that, “I'll come home early if you buy me a new pc game”.