When it comes to the unspeakable amount of credit card debt college students face, many parents say, “No way!” Giving your child an allowance is a great way to teach them while they’re young how to manage their finances. A good time to start is when they hit elementary school and can tell the difference between coins and dollar bills. After you balance your budget and figure out how much you can afford to give them each week, let them know, “This is your allowance.”
Giving Kids an Allowance
Go a step further and break it up into three portions. One is available right now to buy their favorite toy or anything they want. Another is for them to save up for something they really desire but can’t afford at the moment. The last portion is to give to a charity or someone in need. These steps not only show your child how to use money responsibly, but also trains them to be generous.