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Money matters.
This is an important lesson we learn throughout our lives. Why not
start at a young age? An allowance provides the perfect opportunity for
children to learn the value of money.
Whether kids earn it through chores or they are given it to
start a savings account, an allowance fosters values. Children are
shown that hard work can pay off and they can also learn how to spend
their money wisely.
"Some families value several things. With an allowance, they
can
teach responsibility though chores and also, money management," says
Dr. Sarah Kirk, clinical psychologist, Developmental and Behavioral
Sciences, Children’s Mercy Hospitals and Clinics.
Before starting an allowance, it is important for the parent
and
the child to discuss what is expected from each other. This can be
deciding what chores need to be done, the time frame for completing the
chores and the reward/allowance. Dr. Kirk urges parents to make sure
their kids get paid as soon as the task is completed.
"Not paying your children sets up the grounds for arguing and
it
also teaches them not to follow through on tasks," says Dr. Kirk.
Knowing when to start an allowance may prove challenging. Dr. Kirk
suggests starting an allowance when the child shows an interest in
money and when the parents find their child capable of doing certain
tasks. It is important to assign the chores according to the
developmental level of the child. Usually around the age of eight, a
child is capable of having a couple of chores.
When it comes to spending, an allowance can be used for items
the child can live without in order to teach him how to earn and save.
However, an
allowance should not be
used for necessities such as shoes, lunch money, etc. Parents may
find it difficult to let their kids spend their allowance on whatever
they choose, but there has to be room for some type of a
negotiation.
"You have to be flexible and give your kids the freedom of choice,"
says Dr. Kirk. "You can suggest that they save so much of it and then
they may have the choice to spend the rest of it frivolously."
Whatever the reason, an allowance offers a safe venue for learning
how to manage money. Through parental guidance, children are able to
make mistakes at a minimal cost. It forces them to think about how much
things cost and more importantly, they have a greater appreciation for
the things they buy.
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