Parents have a lot of important decisions to make with regard to their kids. One decision that’s sometimes overlooked, although still important, is whether or not to give an allowance. Here are some thing to consider when deciding if you should give your child an allowance.
Pros Of Giving Your Kids An Allowance
Cons Of Giving Your Kids An Allowance
What Age Should You Give Your Kids An Allowance?
If a parent decides the pros outweigh the cons, at what age should a kid begin receiving an
allowance? This may depend on the development of the child. The child-development experts
behind Sesame Street have determined that children as young as 3 understand the difference
between wants and needs. This may be a prime time to start. If you feel as though this
is too soon, you may consider starting once they begin to lose teeth. The monetary reward
for losing teeth may be a good intro into a new reward system. Every child learns at a
different rate. Determine what you’re comfortable with.
How Much Allowance Should You Give Your Kids?
Methods Of Giving Your Child An Allowance
After you’ve established an allowance amount and requirements, it’s time to decide how you want to distribute the funds. One method suggests you put the money in a jar or a piggy bank. This method helps your children grasp the concept of putting the money away themselves and to physically see their funds grow over time.
Once your child gets the hang of depositing their money and watching it grow in a jar, you may want to consider using additional jars for spending and donating. Then your children can put a designated amount in each jar. This process gives them the responsibility to manage their own money and save for items they desire. It also teaches them the value of savings.
The Bottom Line
Every family is different. Determine what may work for you and your family. Establish a clear system and guidelines. There is no one right way to give your kids an allowance.
Your child or grandchild should also have their own savings account at WKFCU.
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