Children and Allowance Money
Category: Parenting
This check list is in the following categories:
This is a list of ideas for helping children learn to manage money.
It is as difficult for children to manage their allowance money as it is for adults to spend their money wisely. It is best to help children begin practicing money management principles while they are young and still living at home.
For example, children need to know what it feels like to spend all their money on candy and then not have enough money for a large item they especially want.
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Help children set a budget
Have them pay for some things that they need and encourage them to spend a portion of their earnings on other people.
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Giving children a lump sum of money a few times a year is better than paying a weekly allowance.
Refrain from giving children money all the time. Let them earn money (after their chores are completed) and make their own decision as to how to spend it.
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It is a good idea to let children work for pay by doing special project around the house.
Jobs for pay are different than chores. Jobs are usually larger and are outside the normal home maintenance routine. Regular chores should be completed before working for pay.
When agreeing to pay your child for work, set clear expectations. You may want to write them down. How much will the child get paid? What is the time-frame for the project? Make sure the child can achieve the level of quality
that you desire. Help the child set goals so they stay on task and determine at the start what the parent's involved will be.
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Keep a list of "Jobs for Hire". Let children choose which job they want to do.
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If a child wants you to hire them, have them participate in a mock interview.
When is a better time to help older children experience a job interview than with their own parents? Create a list of typical interview questions, sit down with the child and have them "apply" to work for you.
Keep it fun! They want to work and earn money, so they will likely comply with the crazy interview idea.
Giving an older child or teenager a "job interview" will teach them to think about their strengths and weaknesses and give them an opportunity to articulate why they would be the best person for the job. They
may even listen to suggestions as to how they can present themselves better in a real interview.
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Open a savings or checking account for the child.
Depending on the child's age, they can experience using the banking system to earn interest or experience the enjoyment and responsibility of a debit card.
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Show children how to use Quicken software or Mint.com to keep track of their spending.
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Share some of the family financial information with older children.
Let children, and especially teenagers, know what it costs to maintain the home, pay the mortgage or rent, utilities, groceries, taxes, etc. Let them see how a lot of work pays for very little.
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Give children an opportunity to share their money with others
Have them pay for some things that they need and encourage them to spend a portion of their earnings on other people.