Struggling with choosing an allowance for your kid? Here are a few straightforward tips on how to choose an allowance for your child.
Q1. What is the purpose of giving your child an allowance?
Before setting an allowance for your child, it would be wise to ask yourself this question. It could be a basic lesson in handling finances or granting your child a little freedom in spending or as a reward for good behavior, better grades, helping out with chores, depending on the priority of the parent. The geographical location and the lifestyle of the parents are also contributing factors.
Q2. When should you start giving your child an allowance?
Every child is different and has slightly different growth patterns, but children between the ages 6 and 10 would be the most appropriate category to start receiving an allowance. Starting an allowance once the child has learnt basic math skills would also help the children in computing their budget and enable them to spend more wisely.
Q3. How much should your child’s allowance be?
Your child’s allowance typically would reflect your lifestyle and the strata of society that you live in. You could start off with a basic amount that you feel would be sufficient for your child’s age group and activities that they are involved in. It is advisable to gradually increase the amount, as they grow older.
Q4. What is expected of the child in return for the allowance?
Generally parents who are slightly well-off do not expect much in return for the allowance that they dole out to their kids, but parents who are a bit more prudent about raising children will make sure that the children get their allowance in return for getting good grades, for good behavior, etc. Child-development experts don’t usually agree with giving children an allowance in return for doing chores, as they feel it robs them of an opportunity to contribute to the family based on love and belonging and teaches them that they should be paid for their contribution to the family. Although it might be true, a huge chunk of parents generally tend to believe that it induces a sense of responsibility in the child from a very young age.
Q5. How do you expect your child to utilize their allowance?
Speaking to children about their expenses will help you determine how they are likely to spend their weekly allowance, you could explain to them about the importance of saving up for future uses and also inculcate in them a habit of sharing.
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