| Allowance For Kids: One Thing Never To Do |
| Written by Darren Ho |
| Thursday, 29 July 2010 07:09 |
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Parents want the best for their children without a doubt. In the GFC (Global Financial Crisis), this has been even more prominent for families and you want to ensure your family has enough money. The question is, how do you as parents make sure your children - who will probably face the same problems that we all experience now - come out on top?
Parents want the best for their children without a doubt. In the GFC (Global Financial Crisis), this has been even more prominent for families and you want to ensure your family has enough money. The question is, how do you as parents make sure your children - who will probably face the same problems that we all experience now - come out on top? You can increase the potential of your kids financial future when they reach certain crisis. What do you do? One of the best concepts is by instilling the concept of allowance int your children! Allowances are weekly/fortnightly/monthly payments to your child to give them financial flexibility. Why is an allowance for children important? The reason for this is so we can teach them about budgeting, saving and the cost of money. Budgeting is a big reason why we give an allowance for kids. If your child decides to use all their allowance on entertainment, let them do it. After they have spent all their money, educate them how they could better utiliste their allowance to bring a bigger reward later. This could be buying the latest video game or basketball that costs more. Allowance for kids educates them how to save and plan ahead which will be more beneficial to them later on. They could start looking to buy a car, or even a house one day. Now, one thing you should never do with a kids allowances is take it away from them when they have mis-behaved? Why you may ask? Let me explain. Giving an allowance to kids is to show them this is what happens every day. Adults receive a weekly income payment from their employers, even if they have not performed that well that day. Now children are going to have bad days or weeks, but don't penalise them by taking their allowance away. This doesn't represent what happens in real life. Punish them in other ways such as not allowing television for a week for example. When we give a kid allowance, we want them to be able to budget ahead, so if they are saving for a small holiday with their friends, it may take 10 weeks to save up for example. Let them do this so they are able to look ahead and plan accordingly. This tool of being able to budget and save that you instil in your children will be a valuable tool right through to their adult years. At the end of the day, don't be too strict on your children with allowances, make it fun, and always encourage them with what they can do with savings in the future. About the Author: Want to find out more about allowance for kids, then visit the team at Teaching-Kids-About-Money.com site on how to teach kids about money. |