Let’s face it- kids face materialism every day, from advertisements on their favorite television shows to peer influence from their classmates. Even a quick trip to the grocery store can deteriorate into a temper tantrum when you simply pass the candy aisle. When you launch into a lecture on the value of money in response to sentences that begin with “I want” or “Gimme that”, it’s like talking to a brick wall. So instead of talking, try showing.

Giving your child an allowance is actually an excellent strategy for teaching them money management. Instead of buying things for your children on a whim or spur of the moment, give them a set allowance with which they can do whatever they please. When it is their own money that is being used, the light bulb goes off- they become aware of the relationship between the price of items and how much of their personal savings will be required.

Don’t feel bad- you’re not the only parent who gives in to the “wants” and “gimmes” of your children. The bad news is that it’s easy for these small (and large) purchases to add up, especially when you’re not keeping track. The irregularity can wreak havoc on your family budget.

So how much should you dole out each week for your child’s allowance? Every family is different, but a good estimate is approximately half your child’s age. A 6 year old would get $3 per week, a 10 year old $5 per week, and so on. While the decision is yours alone, many parents feel that their children should be required to perform weekly chores in return for their allowance. On the other hand, some parents feel that children need to be taught that helping out around the house is simply what is expected when you are in a family.

One of the benefits of establishing a chore schedule for your family, aside from teaching your children responsibility, is that it might keep a little extra money in your bank account. Jobs that you currently outsource, such as dog walkers and lawn service can easily be reassigned to members of your family as part of their weekly chore list.

Whatever you decide, the important thing is that you continue to teach your child the importance of money. Depending on their age, introduce them to their very own savings account, and suggest that they contribute a portion of their allowance each week (or month) to the account. Remember that your child will start their adult life with the lessons he/she learned at home- make sure money management is one of those lessons they take with them.

Posted in Home Budget

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