Allowance 101: Practice Saving, Spending and Giving it Away
In today’s economic times it has become clear that the next generation of consumers and leaders will require a “healthier relationship with money than their parents had.” Although many parents give their children an “allowance”, they don’t have an effective plan for teaching the respect and responsibility that comes along with money.
Learn more about the importance of giving kids allowance with testimony from one of our own class members on ATTN:videos
Kids & Money: How It Started
Vicki, like most parents, had suffered through plenty of familiar (but often heart rate inducing) tug of war checkout exchanges that every parent dreads: Mom, can get this? NO. WHY NOT. Because I said. (queue meltdown, fit, tantrum — you name it, you’ve seen it, you know it’s NOT FUN).
She, like most frustrated parents, found herself either doling out money for another piece of junk, yielding to the whine or enduring the vengeance of an angry kid who decided to derail the following two hours. She had experienced the lose-lose. And she she felt it was time to implement a win-win. From early on, Vicki introduced her kids to the world of commerce and discovered how much responsibility and practice can come from a sound system with little “spending interference” from her.
Why Kids & Money
Giving kids an allowance has plenty of benefits- one of them being an end to that inevitable request in the checkout lane, “Mooooom, can I get…?” When the allowance system is implemented clearly and without “spending interference” from mom and dad, parents can expect to hear, “hmmmm…is this worth it?” as children learn to spend (or refrain from spending) their own money. Kids use this time as a chance to develop a healthy relationship with money so they can enter adulthood with plenty of practice and a clear understanding of what money is, what it DOES and what it DOES NOT do. Giving children (even very young children!) an allowance helps develop the skills they will need to become conscientious, responsible and savvy consumers.
This presentation provides a step-by-step plan for introducing children to money and how parents can act as “financial coaches” as kids learn the ins and outs of handling, managing and yes, even failing with their finances.
Parents will learn the basics of giving an allowance and find answers to questions, like:
- How much and at what age?
- Should money be associated with chores? (Hint: no!)
- Should parents be consistent? (Hint: yes!)
- How much should mom and dad micromanage spending, saving, etc? (Hint: not at all)
- What if my child loses his or her money? (Hint: it’s a good thing)
- What should my child buy? (Hint: all the “stuff” you don’t want to buy anymore!)
Parents will leave this presentation with a real-life, easy to follow and understandable plan for giving children hands on practice in developing a healthy relationship with money. They will feel confident in allowing children to make mistakes, learn by loss and develop the habits for “saving, spending and giving it away”, see the value in handing financial management to their kids and learn to recognize success as they celebrate a hands-off approach to teaching the value of money.
If you would like to hire Vicki, have a conversation or ask us some questions, please contact us.
We would love to talk with you.