The question every parent asks from time to time, how much do you give for a children's allowance? This article will show you, the parent, that a kids allowance is usually determined by a number of factors. There isn't one main factor that will set what an allowance for children should be, but after reading through this, it should give you a better idea.
How much should you firstly give for a childrens allowance? My suggestion is that you start giving them a children's allowance when they are able to speak properly and actually know what money is. Four years old is the earliest I would suggest. The earlier start you give them a kids allowance, the earlier they will start to know what money can do for them. In the early stage of their lives - about 4 and upwards, I would use the rule of one dollar per age. So if they are 4 years, they would receive $4, if they are 6 years old, they receive $6. I will do this until they are 10 years old.
Allowance for kids has a number of factors involved with it.
Age:
Kids allowance depends most of the time on how old they are. The older they are, the higher the allowance for children will be.
Family income:
These days, you will only be able to afford to give an allowance for children as even if you long as you are not struggling with your family finances. A word of notice here is that even if your family has a high salary, you shouldn't go spoiling your kids by giving your children allowance that is more than what they can handle. The reason for a children's allowance is so understand how to become financially responsible now and later in their lives.
What other kids are receiving as an allowance?
Asking other parent's what their kids are receiving as a kids allowance could give you a good indicator as well. This will then give you a ball park figure that you can access and analyze.
The number of children in your family.
How many children in your family will directly affect your budget, so it is just normal that a family with 5 kids will have less allowance for kids each than a family with only 1 child.
When kids grow up, their appetite for different possessions will naturally increase as well. Instead of Barbie dolls and Lego, they will start wanting to buy more expensive handbags or sunglasses. When starting high school, you can try them on an allowance of $15-$20. This will give them some flexibility to be able to save for something with a more lasting result.
Another important point for giving an allowance for children is so they can learn how to save and budget. I would recommend to you that your kids save ten percent of what they are given into a savings account. Describe to your child that saving is what will assist in their financial long-term goals.
Allowance for kids is definitely also about budgeting. Teaching them the concept of budgeting, this will also assist in their future financial well-being.
In conclusion, a childrens allowance should be a fun concept for your child. Allow them to make mistakes, but more importantly, show them how to correct their mistakes so that they are able to save and budget effectively. Giving your children allowance will give them practical experience with money which will give them a positive financial future.