Tag Archives: allowance

How to Ready Your Kids for Financial Success from the Beginning
Understanding finances

As parents, our goal is to prepare our children for adult life, independence, and successful living. A key component of this is ensuring they have the best understanding of personal finance as possible. However, this can be a daunting task, especially if we, as parents, may not be modeling the best behaviors when it comes to our wallets. Here are some helpful ways to set an example and educate your children on the importance of understanding their finances. 

Examine Your Own Relationship with Money through the Eyes of Your Children

As we know, children mirror us, watching everything we do and imitating both our best and worst behaviors. Extensive research done on this topic shows that kids copy us all on their own, and that these behaviors become part of their personalities. This extends to watching parents and caregivers navigate their relationships with money. Think about how you act when you take your kids shopping.

  • Do you make expensive purchases to relieve stress? If so, your kids will likely follow suit, creating a pattern early on of emotional spending. 
  • Do family conversations about money always turn into an argument, or are they simply non-existent? This will teach your kids shame and secrecy. Arguing about money can trigger a stress response in children.

Putting down an impulse purchase with a shrug and leaving the store teaches your child that it’s normal to pass on spending if it’s not in the budget. Setting an example by making the discussion of finances comfortable and open will teach your kids to be at ease when planning financial decisions. Look inward and examine your own attitudes and habits surrounding money, and as you improve, your kids will begin to reflect those healthy habits. 

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How to Give an Allowance
Teaching Kids About Money

~ so your kids grow up financially savvy.

  • Ever get sick and tired of kids begging for one more thing?
  • Ever feel taken for granted because your kids don’t appreciate all you do and buy for them?
  • Ever wish your teenager was more responsible with money?
  • Ever wish your children had a little more patience and stop expecting things RIGHT NOW?

If you answered yes to any of these questions, my advice to you is give them an allowance. It’s as important as teaching them to swim. 

Having an allowance will teach your children how to manage, use, save, spend, and value money. And, maybe most importantly, they will learn delayed gratification—a lost skill in this age of instant everything. 

Growing up with an allowance means your children have a much better chance of managing their future finances responsibly. When children have their own money to spend, they soon learn the value of what they spend it on. A tempting toy that breaks the first day becomes a lesson in quality. Spending the wad on candy means there is nothing left for anything else. 

You will no longer spend time and energy arguing over what you will and won’t give them money for. When you hear, “But Mom, everyone else has one,” you can say, “Great. How long do you think it will take to save up for it? Let’s figure it out.” When they beg for more money, you can say, “You’ll have it with your next allowance. I know it’s hard to wait.”

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Engaging Kids in Housework

Kids don’t want to do chores. That’s a fact. Expect this. That doesn’t mean let them off the hook. It is essential for our kids to be contributing members of the family to develop an investment in and consideration for their family members. A family is a team. When you are on a team, every team player is important to the working of the whole.

But when you yell, bribe, or threaten them to do their chores, the underlying assumption is that they should want to but they don’t. This unrealistic expectation means you will yell when that expectation is not met. But if you understand that kids don’t want to do chores, you will be more effective at ensuring they get to work.

Remember when your toddlers and preschoolers begged to run the vacuum, fold laundry, wash windows, and sweep the floor? It would have taken the entire morning and you’d have to do it over anyway. You didn’t have the time or patience so you got them out of the way to just get it done. Well, you might have missed your chance. Little children want to help — until we make them.

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The Gift of Letting Go

A question and answer in my last newsletter resulted in the following responses from both parents with such an inspiring story, I had to share it. I think everyone, no matter how old your children are, can gain from this. Letting go can be the hardest job in parenting. I thank these parents for their responses to me and permission to share this with all of you.

Q. My 18yo high schooler has been getting $10 a week since he was very little for spending money. I used to give his brother (12) and sister (9) the same, but now we are not doing well financially and they relinquished theirs last year. The 18yo has refused to give up his weekly $10. After he got his license, using our car (which we insure and pay gas for), he got a bank card and an account, and told me to direct deposit the $10. He started buying Starbucks coffees and snacks and told his dad that he had to pay for it. Which his dad did. His dad and I agreed to give him $5 more per week with the understanding he would by his snacks. Recently he overdrew his bank account and then came “crying” to us to help. I said I would advance his allowance once, and that I would not rescue him again. Now he has overdrawn again. I feel financially strapped not to mention he is never grateful but demands the money as his “right.” Giving him the money, when his sibs get nothing, and rescuing him makes me feel angry with him 24/7. He never helps around the house – says “maybe later” which never comes, says it’s my “job” to make him meals and is generally nasty to all of us. I feel guilty about not knowing what is “reasonable” to give him. Should we give him any money at all? Is that our “responsibility”? If so, how much? We already pay for his food, including special requests, gas, car (he uses our newest and safest car whenever he likes), car insurance, his clothes, heat bill, electric bill, phone bill, housing. Help!! This is just going to get worse this summer (he has no plans at all) and next year in college.

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