Why Should Kids Get Allowances - The Top 7 Reasons
Why Should Kids Get Allowances - The Top 7 Reasons
by Rachel Incoll
The question of whether allowances are right
or wrong, is one that has been argued for many generations. Now it's your turn,
as a parent, to decide whether or not an allowance is the best way to educate
your child about financial responsibility. There are many reasons given
on why a regular payment of money to a child should or shouldn't be done
– ultimately I believe there is no right answer, it is up to each individual
family to decide what is the best option for them. Through many years of working
with parents and educators, these are the top seven reasons I keep
hearing on the question of why should kids get
allowances.
1. They learn to be wise with how they spend their money. It
may help to teach them how to prioritise their spending, & learn from an
early age what things are a waste of money.
2. They learn how to save
money. Having a regular amount of money, may make it easier for them to
establish good saving habits, as a certain percentage of the money from each
payment can be placed into a savings account/piggy bank. Without an allowance,
any money they receive, may simply be spent, with nothing going to
savings.
3. They learn how to donate their money. A certain percentage of
their money can also be allocated to donations to the needy, hopefully
encouraging your child to be more thoughtful of others, & not greedy with
their money.
4. They will learn how to budget their money so it lasts
between payments. Eventually, most children will learn to be careful how they
spend what limited money they have, so they don't run out of money. This will
only happen, if the parent doesn't give in to the initial whining for more money
when the mistake is first made!
5. They can learn to make mistakes with
small amounts of money. kids will learn how to manage their finances
responsibly far quicker through being allowed to make mistakes themselves (and
suffering the consequences), rather than being told how they should be managing
their money by someone else. Parents need to be there to guide their children on
how they should spend their money, but not dictate (unless there could be
serious consequences from their mistakes).
6. They may s top
nagging you for money. The idea is, if they are receiving a regular amount of
money, and they have a good understanding of how to budget it then they will
never run out of money, so won't keep pestering you for more. Realistically, it
will probably never put a complete end to the nagging for money, but it should
reduce it.
7. You may end up forking out less money. If you sit down, and
add up how much money you give your child during the week & how much you
spend on items for them (e.g. clothing), it may actually work out cheaper to
give them an allowance, and make them responsible for a lot of their
purchases.
As I mentioned earlier, an allowance isn't necessarily the
best option for every family, but these are some of the reasonswhy many parents & educators believe an allowance is the only way to
go. Some families though, may not have enough room in the family budget to
provide their children with a regular payment, or may simply not believe in it
for their own personal reasons. Either way you choose, I have seen with my own
eyes, children from each side of the fence who have grown up to be exceptional
money managers, and likewise children who seem to have no idea. Ultimately, it
comes down to how much guidance a child receives from their parents/guardians on
money – whether through an allowance or not.
About The Author:
RachelIncoll is the author of kids
Money Tips. She has helped show thousands of parents how they can teach their
children everything they need to know about money in just a few simple steps.
Visit her site http://www.kidsmoneytips.com to find out how your child can
manage their money more effectively with printable money charts, worksheets & more.
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