If you were lucky enough to get allowance growing up, you can relate…
Remember the time when we used to wait for the beginning of the month to get an allowance from our parents? I always used to get so excited about my payday (the allowance day) and I bet you too, would be always looking forward to it.
Though parenting has undergone a huge shift, mostly positive; this system of giving an allowance is still the same. Giving a desired amount to your children for their own spending so that they don’t have to rush out to you for everything is named as allowance. Some parents give allowance without any exchange of household chores. They believe that the kids should have the moral understanding that chores are everyone’s responsibility and you don’t get paid for doing your own work. What ever you decide to do in your home, is your decision. You do you boo!
While others believe in making their kids learn the value of money. Hence, they set out regular tasks for their kids and give them their allowance accordingly. I usually prefer the hybrid method where you give them a certain amount in the beginning as an allowance but if they’re super helpful, they get some extra cash. And I am NOT opposed to bribery at times either!
Here’re a few tips on giving allowances to kids:
1. Have a regular date or fixed day
Try having a fixed day or date when your kids will be getting their allowance. This will help them manage their money mindfully and they will know when and how to spend.
It’s always advisable to give the allowance at the beginning of every month so they can plan out their expenses early enough.
2. Communicate with your kids
Let your kids know the reason behind you giving them money. Otherwise, they can use it whenever they wish or do some unworthy expenses. Further, this will make them understand how to handle money efficiently and would teach a few things about budgeting as well.
Having a clear idea or the reason behind giving allowances will help your kids to not waste the money.
3. Teach them budgeting
Make them aware that the money they’re getting isn’t only for spending or using for all the expenses. They are also for saving and this will make them understand the importance of saving money for an emergency. While doing so, be clear that you provide them with enough money so that they do have something left for savings.
Also, teach them to prepare a chart where they can track the flow of their allowance and control it if they are overspending. When your child will grow up, you will have a savings account for them and this is important for them to learn from an early age.
4. Set a fixed amount
I personally do not give away the allowances as per your kid’s wishful amount. This is to teach them to save enough if they want something huge. If we parents keep on fulfilling all their needs by giving away all they want, we are unable to allow them to appreciate the value of a dollar and give them unrealistic expectations.
Allocate a fixed amount and pay in cash instead of gift cards or any other method. This will let your child know how much they have in hand and how much they can actually use or save.
I would love to know what other strategic methods you use to give allowance to your kids, leave me your ideas in the comments.