We might not know it, but some simple things we learn as a child can really impact us for the good as adults. If we do not learn as a child we should not blame our parents, because there is many ways to learn a life lesson. Sometimes children are not given money, chores or pets because of lack of trust, religion, culture, or a parent’s childhood. One thing we all need to remember we are all unique, we learn different ways than others.
Looking Back To Childhood
When I was a child I was given responsibilities. These were chores I was suppose to get done everyday because I was the man of the house. This confused me as a child. I am the youngest of two, I have an older sister, and at that time my Step-Father was more than able to take care of chores around the house. I saw it as they were trying to push “work” off on me. I thought, “If I have a job then I won’t have to do this dumb chores.”. I was such a fool when I was young. Although when I got my first job, it was a summer job, I felt appreciated, felt accomplished, felt like there was a meaning for what I did. It was encouraging to me. I thought at the time it was just the paycheck, but now I think it is more.
What does a paycheck mean to you?
When I got my first paycheck I felt accomplished. My first week was so stressful. I wondered if it was worth it, but the paycheck told me it was. We get a check either weekly or bi-weekly and it makes us feel the job is worth the effort because we need the income. Although when you were a child did you really know what feeling accomplished was like? I mean parents say “Thank-You” or “I appreciate” is great but giving an allowance not only makes a child feel accomplished it teaches the life lessons on budgeting.
There are many ways a child can be taught money management. An allowance is the best way. Bank of America has seven tips on better money habits.
- Know your child– When your child gets to a certain age they will come to an understanding about money. An allowance allows your child to understand about the difference between buying a video game or renting a video game.
- Decision, Give An Allowance For Good Grades or Doing Chores– Sixty-one percent of parents give their kids an allowance for doing chores, as 48% give their children an allowance for good grades. (According to the American Institute for CPAs). Now rewards for good grades is a great idea, but there are mentally challenged children that may not be diagnosed later in life. Paying for doing chores may not sound like a great idea, but can teach responsibility. Let’s say they are responsible for five things a week and you would pay them $5.00. They agree but you set conditions. The first I would set would be a dollar per chore so if they only do 4 out of 5 they will only get $4.00.
- Chores Are A Good Idea– According to the AICPA, 89% of parents require the children to earn their allowance. According to financial experts, allowance is a learning tool and should not be tied with chores. If you agree with this then you can encourage your children to help out around the house and give the allowance as a reward.
- Make the decision on how your child can spend their allowance– You may think you wouldn’t have the right, but you do. The Government makes laws on when and how we can spend our money legally. We are not allowed to buy alcohol before we are 21. Well I am sure most people had their first job before then. So as a parent you can limit spending on video games, toys, educational, school, recreation, saving, donation, and more. Make rules and if the do not follow you can “Fine” them. You can do that by holding a week’s allowance or by having them pay you.
- Teach How To Save– Saving is important at any stage in life. It does not matter if a child wants to save for a video game or an adult wants to save for a car or home. Saving is important! We never know what will happen tomorrow. Teaching a child to save while their still in elementary school can encourage the teenager in high school to save for college.
- Is Charity Required– Make the decision as a parent if given to charity is required. I grew up as a Christian and still a Christian today. I believe in giving 10% to the church or those who need the help. It depends on religion and culture in your family, but giving to a charity is always good. Let them choose as well.
- Determine the “Do Not Do” list– Give your children a little free way but you have the right to tell them what is off limits. It would not be good if your child goes and spends money on junk food or just toys.
So now do you think giving a child responsibilities and rewarding with an allowance is good? Should they just get an allowance to learn how to manage money? Maybe you think an allowance is just another cost to you because you get the kid what they want? I want to know you opinion. I have mine. I think children should get it as a reward. They should also lose part of their allowance if some of their chores are not done. Actions have consequences. What do you think?
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Sources for this page:
Better Money Habits, by Bank of America, with Khan Academy (2015)
Merriam-Webster, Inc (2015) definition of fine