Should I Give My Child an Allowance?

The financial education a child receives determines the degree to which they enjoy the options life has to offer. Money is the means by which they get everything in life. The time is now to teach money fundamentals; the ebb and flow of money and what it takes to get what you want in life.  Teaching good habits develops the appreciation and value of money and its powerful uses.  

Children soon develop the, “I wants” and it is no wonder with all the advertisements they see on TV, radio, in books and at your local stores while shopping. In fact, if you take a moment to notice all the brightly colored ads everywhere you soon realize the advertising directed at your young children.  Marketers, those you love and trust, are heavily marketing your family, primarily your kids.

After all marketers, know how to tug at your heartstrings, manipulating your kids to request items generating desires from their ads, the purse strings are not far behind.  Meaning, you and your wallet make your child happy. The more important thing is to teach kids about advertising and how it tries very hard to convince them they want something they really do not nor need.

• The next time your child brings an advertisement to you and shows you a picture of what they want, have them go set with scissors and craft materials.
• Tell your child to cut out what they want and make a chart or board including the price of the item. You will need to show them the prices as this is something they may not be aware. Ah ha, we first make them aware of cost.
• Cut and paste the item and its cost on a board and explain the amount it cost.
• Go on to explain that anytime something is needed we plan and save for that item and once the money is set aside bit by bit the item can then be purchased.
• Ah they have just learned the concept of budget!

• Experts say you start out with a dollar per year of age at around the age of two increasing it a dollar each year as they age or personality appropriate amounts, they should get more for working to earn more, going above and beyond.

The Deal With Kids Allowance

You now make the deal, explain what it is you expect your child to do everyday.

• You then explain this is how you earn your two dollars a week.
• Go further to explain you use your money to buy the things you want. This is where the chart comes into play.
• You will need to guide your child helping them determine how much money they want to put toward each item each week.
• Once they reach the goal they will have learned the power of earning it. The most powerful lesson earned here is that of impulse.
• After working to save the money the child often feels the item just isn't worth it or not something they really truly wanted after all.
• It feels good to lose the impulse spending habit!
• Then they are left to imagine their money growing to a much larger amount.

The Next Shopping Trip

• Naturally your child has formed a habit of asking for things and getting them.
• It’s important to reinforce what your child has learned and now put it to work forming a habit of using money as a tool.
• When your child ask for something you reply, “How much of your money did you bring with you today?”
• The idea is to allow them to spend it freely at first but the key is for you to be firm and reminding them each time they want something to stick to the plan of spending within their budget.
• You will be amazed at how quickly they shift their thinking about the “I wants”.

Enterprising Youngsters

I have two children myself, one very frugal who's learned to stay within the budget and the second who’s a spender adopting the how do I earn more attitude. This is good in both regards.

I've outlined a chart of chores that pays a set amount which allows the kids to earn more toward the purchases they want or ultimately adding to their bank account.

No Brain-er

You’re obviously intelligent enough to understand the power behind this approach and that it does far more than teach your child about money.

• This in fact empowers your child to feel good about themselves, their abilities and teaches them practical life skills.
• It also gives them incentive to do well in school in order to raise their adult earning power and options in life.

All in all this is a win win for everyone involved, so put your own personal twist on it and by all means please do give your child an allowance!

This almost always makes kids want more in order to fill secure.  Here's a great list of powerful reason why not to buy something you don't need. 

Other Powerful Learning Tools

This is a wonderful time in the life of your child. The entire allowance concept will open new and powerful opportunities for learning and growth. Each time your child has difficulty in a situation and develops a case of the “I wants” remind them of these great facts.

• The more you buy the more trash you create.
• Talk about what can be recycled and what can’t, imagine the land fills.
• Get your child involved in a recycling project at home.
• Knowing the trash goes into a land fill and how it works is powerful.
• Ask, “What are your plans for this item?”
• Ask your child to look carefully at the amount of packaging considering if it's environmentally friendly, site the landfills once more.
• Do you have room for this in your room, is your room clean, neat and organized, taking care of what they already have?
• Remind them it’s their job to take care of their planet, home and money.

You don’t know until you’re taught, so have fun teaching your child all the wonderful ways they can spend wisely and do their part to take good care of their future. You will be so happy you did now and in the future.

Much Love and Happiness, Katie