Do you give your children an allowance?
I give my children an allowance. The hefty sum of $1 per week! I give it to them for no particular reason other than that is what they get. There really is a reason, which I’ll get to in a moment, but to them there isn’t. If they want or need more money, well, then they have to earn it.
I pay them on Monday night after I get home from work. No particular reason for this day other than it seems to work for me. That is not to say I don’t ever forget. Fortunately, my little angels always seem to remember and they are quick to remind me.
For me the importance of giving them an allowance is so I can teach them how to develop a healthy relationship with money. I want them to know the proper way to handle money and it is much easier to do this if they happen to have some to work with.
A dollar a week doesn’t break our budget and isn’t too much to skew their perception of value. I do thing that can happen if you give your children too much money. The size of your family and your budget need to be factored in too. Just because you can afford to give them more doesn’t necessarily mean you should.
I begin giving an allowance when they start first grade. This works well too because they begin learning about money facts and counting money in school at this age. They are also beginning to be more responsible.
Already my children have learned, through trial and error, that if you spend your dollar right away then it is gone. You have to wait until payday to get another one and Mom doesn’t give advances. They have also learned that saving can be fun too. The more you save then the more you have. Wow! What a concept.
I have shown them how to plan ahead and budget for the future such as if we are going on vacation or for upcoming birthdays and holidays. We are also learning resourcefulness such as using coupons to stretch our dollars and making gifts instead of buying them pre-made.
I was proud of my girls this past Christmas because they chose to make their own gift wrap and tags instead of buying them. The year before they split the cost of a roll of paper at the $1 store which, I thought, was a great idea. This time they decided to use that money for the actual gifts and made their own.
I am amazed at how quickly it all makes sense to them and their understanding of money concepts has already developed. I also love that they are very much willing to work and make extra money when they feel they need to.
Money is not a taboo subject in our house either. We openly discuss what interest, bankruptcy, foreclosure, debt and those things mean. We talk about the importance of careful purchasing, donating to good causes, saving for a rainy day. What is a credit card? How do checks work?
I want my children to grow up with good strong money sense and I want it to come naturally for them. So I start early so it is ingrained in them from the beginning. I know they will most likely make mistakes when they are older but I also know they will have the ability to fix their mistakes and learn from them too.
How is the money subject handled in your household?
