Allowances for Kids
Allowances have always been a big part of being a kid. If you were lucky, you got an allowance without any strings attached. But more often you had to do some chores around the house, whether it was taking out the trash or cleaning out the garage. It might seem a little old-fashioned these days, but providing your child with an allowance still has a lot of advantages.
An allowance shows the value of work. If you want something, you’ll have to work for it. It’s a lesson we have to learn as adults, so the sooner we get started, the easier it’ll be.
An allowance helps kids learn how to manage money. Should they spend all the allowance on one big-ticket item or save it for a rainy day? Making these decisions early on can help kids understand financial decision making and budgeting.
An allowance teaches responsibility. Will your kid leave that skateboard out in the rain if they worked hard to get it? Maybe, but if they have to sweat to get it, they’re more likely to value it and take better care of it.
It’s really hard to be good at something if you’ve never had a chance to practice, so it makes sense that the best way to learn how to manage money is to actually have some to manage. An allowance is a great place for kids to start.