Rich Kids With Loose Ends. Rich Kids With Fake Friends
When our kids are young, all their needs are taken care of by us. Right from food to clothes we decide on everything. But as soon as they grow up a little they expect us to let them take care of their finances on their own.
When it comes to dealing with kids and allowances there are only 2 alternatives available!
- We encourage them to ask for money every time they require to spend it.
- We give them a target amount for a particular period of time, say a week or a month.
Both these alternatives have their own pros and cons. Amidst all these plans that require being made, the real question which arises is that, ‘do our children really require allowances?’
How Do Parents Deal With Allowance For Kids?
According to the recent studies conducted, it has been observed that most of the parents of today’s age want to choose the second alternative. This is mainly because we want our kids to be money conscious.
We want to give them the best of the training when it comes to money. And fair enough, it is perfectly alright to want to make your kids grow up to be responsible adults.
When To Start Giving Allowance To Kids?
After making this decision of letting kids have allowances paid to them, parents are often confused on when to start and how much to start with? For building a financial consciousness among our children, the earlier you start off the better is.
When our kids are young, they have no value and point of views about money. They are willing to learn what we teach them. So this is the exact time to make your kids aware of money and build a positive perspective in their mind about money.
Here is an innovative way to teach them to save!
Start with as little as a dollar a week maybe. One of the coolest idea to make them responsible for their acts with money, that has been flooding the internet is to buy them three piggy banks with the tags reading ‘spend’, ‘give’ and ‘save’. The money in the respective jars has to go to the respective usage.
With the spend jar money, the child becomes conscious about the limited resources and the unlimited wants. He becomes aware of how to keep a control on his expenditure.
With the savings jar, children realize the importance of keeping a little bit of money for the future. In this generation of living on credits, it is always better to teach them this concept now at a young age than at the age of 25 years when savings is the most required resource.
The give jar is a special one here. This jar will teach them to be generous. This jar will also inculcate a sense of gratitude in them because of the fact that they are capable of helping others.
How To Give The Allowances? A Myth Busted!
Parents have been following a practice of giving allowances to kids as a compensation for doing the household chores. Maybe like putting the dishes in the dishwasher or babysitting the younger sibling for an hour. This way of providing our kids with allowances, no doubt, teaches our kids that they have to work for money and that there are no free rides.
But one of the drawbacks of these kinds of trade-offs is that, in the end, it also builds a money making mindset in our children. They start treating household chores as a ‘job’ and house as a ‘workplace’. Kids should be encouraged to do household chores, but that should be free of cost, just like the parents.
It is important for them to know that not every responsibility they take up is going to pay them. Some chores are to be done for the sake of our own well-being.
So, the myth underlying one of the most commonly used methods employed by parents to give allowances to kids is busted here. Come up with other more innovative and less money-minded ways of reaching that dollar to your kid’s pocket.
Start giving them allowances when they are young and do not have any judgments about money. Teach them that money is a way of expressing gratitude for the goods/ services availed by us. It is nothing more than a medium of exchange. Building a positive attitude regarding money is a tool that your kids will be able to use for a lifetime. And trust me, if you empower them with respect to money, they are going to be grateful to you forever.
Let Us know what you think about giving pocket money to your kids.