So What About Allowances?

CatastropheWaitress

Hello Friends,

I have been asked again and again about allowances.

The questions are numerous but the main ones are:

"Should I give my child an allowance?"
"How much should I give my child as an allowance?"
"When should I start giving my child an allowance?"
"Will an allowance ruin my child's entrepreneurial spirit?"

I understand your questions.

Allowances are a very touchy subject and really come down to each individual's personal strategies for financial education for their child.

Teaching children about money can be very difficult and confusing for the parent as well.

Most of us were raised with the value that "money is evil", or "you don't need to have money to be happy." But have you had a good look around you lately? Can you find me a family who are in a lot of bad debt that are not stressing about their finances?

Maybe money doesn't make you happy but not having money will make you a lot more unhappy, I can tell you that for sure.

Just imagine, you have a recurring income of more than $10,000/month. How would that feel?
Would you feel stressfree because you are now able to pay off all of your expenses and thereby not create any bad debt?

sharon_tenenbaum

How will you feel when you have money left over at the end of every month instead of living paycheck to paycheck?

What if you were financially able to give away 10% of your income, every month, without even noticing the fiancial impact? What would you give it to? Who would you like to help? How would it feel to be able to help others in need with the extra money that you are earning without even feeling the financial impact? It would be pretty awesome right?

So how does this tie into the topic of allowances?

Here are some of my own suggestions on the topic to get your financial juices flowing.

1. Maybe when we give our child an allowance it might start to create the feeling of entitlement in our child?

2. What if by giving our child an allowance we were actually hindering their financially creative minds? Would they be so used to just getting money that they wouldn't even bother to come up with creative new ways to earn their own money?

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3. And what about pride of ownership that comes when we are finally able to acquire our dreams by our own means instead of just as a gift from someone else?

These are just a few of my thoughts on this matter. I'd love to hear from you some of your ideas, suggestions or questions on the subject of whether or not we should be giving our children an allowance or not.

Maybe you have some ideas on easy ways for kids to make money so they won't need an allowance? I'd love to see your suggestions on my blog.

Cheers.....Amanda.....Excited Life Enthusiast!
http://www.teachingchildrenaboutmoney.com/

ABC News: Teach Your Child How to Handle Money

Why Parents Don't Talk to Their Kids About Money

I just found this article on abcnews and wanted to share it with all of you.
I think it really hits home with a lot of us parents and really helps us understand the link between kids and money.

ABC News: Teach Your Child How to Handle Money:

"Why Parents Don't Talk to Kids About Money

The biggest reason is a lack of education. For the most part, the concepts of saving and investing, and even basic money management, are not taught in our schools. As the online survey from Schwab revealed, there is a general sense of discomfort around these topics which make it a real challenge for parents to broach them with their children.

Compounding this feeling of uneasiness is a lack of knowledge and confidence about financial matters — which makes it difficult for parents to pass along important insights to their children.

Where to Begin
I think the best way to introduce the topic of money to your children is to do so at the dinner table. Oftentimes, it is the only time the whole family is gathered together on a regular basis.

I encourage full disclosure between parents and their children when it comes to family finances. Time and again, I see parents who are struggling financially, but want to protect their children from these struggles. By doing so, they often end up digging themselves deeper into debt by continuing to support the spending habits by their children. A little honesty will go a long way towards preventing unsustainable spending and developing a greater sense of financial responsibility."

Hope you found this article helpful,

Cheers.....Amanda van der Gulik.....Excited Life Enthusiast!

Kids and Money

Welcome and thank-you for taking the time to visit my blog.

Teaching Kids about Money has been my passion now for a few years.

When Children understand how to use their money then they will be able to become financially independant from a very young age.

Let's make future your child a Young Entrepreneur together! Today!

Cheers.....Amanda van der Gulik......Excited Life Enthusiast!