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When Should Parents Start Giving Their Kids Allowances?
By JLP | March 14, 2006
Single Mom asked me the following question:
giving their children an allowance?
I think it is up to the parents, but I would start at around age 5 or so. I suppose you could start at three so that they kind of get the feeling of what is going on. However, I doubt that a three-year old is going to really understand what is happening with their money.
A five-year old will most likely be able to understand that something they want at the grocery store is going to cost money. So, it might be neat for them to be able to get some money out of their piggy bank to take to the store with them to buy a pack of gum or candy or something like that.
An Introduction to Goal-Setting
To get kids hip to the idea of setting goals, it might be fun to flip through a catalog with them and pick out some toy or something that they want that they can save for. Help them cut out the picture and put it in a place where they can see it. Then, when it is time to go to the grocery store and they want to get some money for candy, you can show them the picture of their goal and tell them that if they spend their money now, it will take them longer to reach their goal. It might make a difference and it might not. Of course it is your call whether or not you let them spend their money.
It is a learning experience for both parents and kids. I wish my kids weren’t so spontaneous with their spending. For instance, we will go to a store to get a particular item and they will see something else they just have to have and they will forget the reason they went to the store in the first place. In most cases I let them spend their money the way they want because I figure they won’t learn anything if they don’t have control over the situation.
Anyway, those are my thoughts on kids and allowances.
Topics: Kids and Money |