Using Allowance as a Tool to Teach Financial Responsibility and Accountability to Children
The first place of learning for every child is their home. Kids learn financial discipline, accountabilty, budgeting, savings and contentment from home and that's why I believe kids shouldn't just be given an allowance but also be taught the value of finance, how to manage the finances given to them, accountability and budgeting from the allowance given to them.
I will give my kids allowance, and also use that as a tool to teach them financial discipline and accountability.
As a child I was only privileged to allowance when I needed it, because my parents provided all I needed at home and any money given to me was for a purpose.
Having everything I needed, I used the money to satisfy some wants and in most cases saved for a particular desire.
I believe children deserve allowance, but they also need supervision on how to spend and also, while making allowance available for kids, it's also necessary to teach them financial discipline, budgeting, and also make them understand that money does not always come at a free cost and the value of money.
If my children have everything they need at home , I don't expect the child to use their daily or monthly allowance for irrelevant purposes, because I will always demand for accountability and budgeting.
I believe the failure to inculcate these values and make them understand that nobody gets money for free, will makes kids to minimize entitlement.
I want my children to have a better life than I had, but I won't do that at the expense of making them grow to be entitled adults that don't understand the value of money. Allowance will be given to my kids, but for a purpose and also as a part of financial management classes.
I expect savings, because even as a child, the little money my parents gave me, taught me to save. I might have saved for less relevant occasions, but I cultivated a habit.
Teach them to spend wisely and I understand budgeting better.
Kids should definitely give account of how their allowance was spent, so, as parents, you should be aware of what they spend on. That's to prevent them from purchasing harmful things too.
Also, there would be no fixed allowance for a child, especially a teenage child. The allowance that will be given to my child will be based on my choice and financial capacity, not the child's.
It is from demanding habits that kids grow up with the mindset that the world or people around them owes them.
Allowance doesn't spoil or make a child bad, but rather it's a way of inculcating good values on kids. I know an aunt that never gives her kids allowance, but instead keeps her money where her kids are fully aware of and instructs the kids to give an account of every penny taken from the wallet.
Allowance shouldn't just be given to kids for giving sake, but for a purpose.
I will teach my child that allowance should not be spent without a plan and purpose. They should understand that money was earned through hardwork, not pick on street. They should understand that allowances aren't just free money, but money that should be spent with a purpose and accounted for.
Give kids allowance to teach them financial discipline. The allowance should be a tool for teaching children to be financially responsible and accountable towards money.
Parents should give allowance with the intention of teaching their kids to spend responsibility and grow up to be responsible adults.