As responsible parents we provide for all our sons and daughters living requirements. Why is it important to give children's allowance? It's a priority to introduce this idea of money responsibility at an early age to our children so they can grasp the meaning of what value everything holds.
Today's society we tend to just put everything on our credit cards or use what kids call "plastic" money. It's not concrete for them to see the exchange for goods bought. Children can imagine money growing on trees. Everything seems to be paid for unconditionally. Children have never had to work for anything. Once understanding is possible for children we need to take the responsibility to educate them of how this world works.
Parents need to explain the reason why they go to work. Explaining to our children how we earn money and how this enables us to use the money to buy and pay for the groceries. This early introduction to money will help our kids avoid the poverty trap. Teaching children to live within their means will help prevent them getting into the credit card debt they won't be able to repay. Living beyond our means is a problem in today's society and it doesn't matter where you come from.
As parents we have the primary duty to our children to give them a realistic picture of our financials from the beginning. Parents should never try to be something they are not. This will only encourage children to live a lie. Living within our means does not mean we have to tell our children they "can't" have something but rather they can have it "later".
Pocket money for kids should not be just given without guidelines. It would be unwise of us as parents to issue freedom of use when there is lack of understanding of what responsibility is placed on them. Allowance for kids can start realistically when they start school. Here is an environment where they can learn what they can get for their dollar.
The initial lesson in giving pocket money for kids is so kids can see the face value in cash. Is the lollipop worth more to the child than a toy car? They need to decide if the lollipop will make them happier than the toy car they could have bought with that money to give it up. These experiences in early life will only help make a clear path for them when they grow up and have to make bigger decisions in life.
Give allowance for kids only when parents are certain their children can grasp what money is and why we need to be wise with it. Children's allowance should enable parents to teach their kids about savings and spending. Parents should always assist their children make decision about their allowance spending by giving children limited choices. For example parents should ask their kids "Do you want to buy A or B or would you rather save C with your allowance this week."