Give Children An Allowance? – Should you give your children an allowance? Experts say that it could be a tool for kids to learn how to budget.
The difficult part is deciding how much is appropriate.
The purpose should be a teaching tool on how to manage it. This will teach them how to separate their “wants” and “needs” to provide your children the freedom to purchase what they want. It might be the perfect time to teach him how to budget.
Decide what expenses your child will be responsible for once they have their own allowance. This can help you determine the amount. For example, if you expect your middle-school aged child to pay their own way at the movies when she goes with friends or pay for their lunches, then you’ll need to give them more money. On the other hand, you’ll also be cutting down on your out-of-pocket expenses if those are your expectations.
Create a list of what you already pay for and what your child could pay for. Go over that list with your child to make any necessary adjustments on a regular basis.
Choose an amount you can afford to give. Some people think a dollar per year of age is appropriate, while others assign each chore a monetary amount. The bottom line is you need to be able to afford your child and they need to be able to afford the items you’ve decided.
Think carefully before tying an allowance to chores. Families rely on everyone pulling their own weight around the house. Chores are good for children and a way to teach them that they are expected with or without money.