Good money management and developing practical skills and techniques for saving are two of the many benefits of establishing an allowance for your children.
An allowance is a monthly payment you give your children for their regular expenses. In most cases, it is presented as a reward to children and adolescents for completing household chores. In the same way that it is offered monthly, some prefer to make it a custom every week or for another defined period.
Offering an allowance can become a habit that arouses interest in properly using goods.
Here we give you the other benefits it brings to your family and you.
You teach your children about how to manage their money
What is the best way to learn how to manage money? Practicing! The idea of receiving a regular payment forces your children to manage money and be wise with their expenses. Allowing children or adolescents to determine how they will distribute their money is a primary signal for developing a savings habit and critical thinking when investing. Teach them to save from a young age!
Develops of a sense of independence
Your children will make decisions on their own to develop a greater sense of independence.
Offers opportunities for personal growth
The power of having money at hand from an early age gives children the chance to improve their opportunities for personal growth. Children can acquire management skills, improve self-esteem, and strengthen financial education.
Improve ability to set priorities when spending and investing
What will they buy? How will they spend their money? As a parent, you will ask these questions that they will have to answer. With the payment of an allowance, your children will be responsible for choosing what they will use the money for. An allowance develops a sense of selectivity in children and helps them set priorities. Faced with possible group pressure, they will have to opt for some alternative, and this will be the challenge that will put their decision and the proper use of their allowance at stake.
Strengthens the responsibility of the child
Having money on hand also supports developing a responsibility to keep it safe and knowing how to use it. These two skills are strengthened when receiving an allowance. In this way, children will also learn the value of money and why it is essential to be responsible when keeping it.
The implementation of the allowance in the family strengthens the core and makes your children learn not only how to save but also helps them in the decision-making process. A good recommendation is to estimate the budget your child needs to get by during the month, and assign an appropriate amount.