Allowance A Valuable Asset For Parents
September 2nd, 2011 
Carol 
As children grow older, many parents work hard to instill a sense of responsibility in their sons or daughters. Whether it’s teaching them the right approach to academics or trying to impart a concern for the community in which they live, parents recognize that children can greatly benefit from responsibility.
One area where that rings true is with respect to finances. An area where many adults even struggle, money management is a lesson that doesn’t need to wait for your child’s first job or his first credit card. A good approach can be to start giving your child an allowance at a young age. While some parents scoff at the notion of paying their child to do chores around the house, the right approach to allowance can prove quite beneficial in the long run. With even the smallest amounts of money, children can learn to budget, save and even to do some financial planning, all valuable lessons that can come in handy later in life.
While you might understandably remain skeptical of paying your child for things you consider to be part of life, following the right approach with respect to allowance can pay dividends for you and your child.
· Set the ground rules. Paying your child for everyday, run-of-the-mill chores is a bad approach. Things such as putting their laundry in the laundry basket or putting their toys away should not be considered allowance-worthy, as these are fundamental things all children should do anyway. However, giving them an allowance for going the extra mile or doing extraordinary chores is perfectly all right. This can include mowing the lawn, cleaning out the garage or other chores that are not part of the daily routine.
Also, it’s important to note that children should have to work for their allowance. Easy jobs such as making a bed won’t teach the value of hard work, but instead the notion of a quick, easy buck. When discussing allowance with your children, make sure they know these rules and that the everyday activities for which they don’t receive an allowance cannot go unaccounted for simply because they don’t yield any money in return. Let them know they won’t receive any money if they neglect a single chore.
· Teach them about money. Many people reach adulthood and have no idea how to manage money, which can result in bad credit, unpaid bills and, oftentimes, going back to mom and dad for financial assistance. Parents looking to avoid such a fate would be wise to teach their children about money at an early age. An allowance, particularly one with restrictions, is a great way to accomplish that. For instance, parents who give their children a $10 weekly allowance can mandate their children save at least $1 or $2 of that each week. These savings can then be placed into a savings account (most banks have saving accounts for children), where your child can see his or her money grow with interest and learn the value of saving some money, even the tiniest amount.
Also, make deals with your children for certain things they want. For example, if your child has his eye on a video game that costs $30, tell him you’ll split the cost of the game as soon as he saves $15. Once your child has saved $15 (which can seem like a lot to a child), he might even reconsider buying the game at all, which could teach him the value of spending wisely as well.
· Teach them hard work pays off. While it’s important to establish parameters for your child’s earning his allowance, make sure he knows those parameters are not necessarily set in stone and things can be adjusted if warranted. If he works extra hard, give him a little more allowance. This can teach the valuable lesson that working extra hard will reap more rewards.
Posted in 
