Young Americans Blog

Sara Says: It’s Never Too Early to Start an Allowance

By: Sara Sankovich Published: January 16th, 2014
Brilliant play by the kid!

Brilliant play by the kid!

January:  the most optimistic time of year. When resolutions are actually observed, we don’t have every weekend booked for the foreseeable future, and all of us have a whole year to rest before the next holiday season. Yes, this is a good month.

Except for the fact that the bills keep coming, that is. Also, tax season is well on its way. Oh, and your kids are still going to want things.

Kids: the most financially optimistic people on the planet. They have no idea that the majority of your money goes to keeping food on the table and a roof over their heads (That’s magic, isn’t it?).

So, how do you get the wee ones to understand the basic principles of financial responsibility? “Allow” your kids to handle their own money with an allowance!

 

 

Some folks think an allowance is “letting their kids have free money” or “paying kids for things they should be doing.” These are great points to make! The two sides of this argument are completely valid concerns, so definitely take the time to form your own opinion. If you’re already certain this is something you want to do, keep reading for my tips!

1. Research!

2. Realize that this is an ongoing process and decide what you want your child to learn from it.

3. Set the ground rules – You don’t want to hear “that’s not fair” every week.

4. Empower your child to determine spending/saving goals.

5. Be honest, especially at the beginning.

6. Be consistent!

7. Encourage your kiddo to reflect on their habits as time goes by.

Do you have your own tips or stories to share?  Write them below!  I would love to share them.

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