Without ever having money of their own, kids and teens will never know how to be responsible with their spending. To create good habits, you need to start early.
Allowance isn’t just about giving kids free cash each week. Instead, it’s the perfect opportunity to teach children how to manage their finances before adulthood, when the stakes are much higher.
Some parents feel that children shouldn’t be paid to help out around the house, because they need to contribute to the family. However, they are looking at it the wrong way. Yes, kids should be expected to do chores, but an allowance is simply a reward for hard work.
According to The New York Times, two-thirds of parents in the U.S. give their children an allowance, and four out of five parents have their kids work for the money. If children are being taught from a young age that work equates to benefits, they will have an undeniable advantage later in life.
When the child turns 16, however, it may be time for them to put an end to relying on their parents for income. It depends on the teen and what’s right for the family, but at this age, it is important for adolescents to get some job experience if they feel they need money for whatever reason. They don’t have to work at a mall, supermarket, or fast food restaurant to have a “real” job. Simple tasks like mowing lawns, walking dogs, babysitting, and tutoring are great ways to earn cash while juggling homework and extracurriculars in high school.
If kids and teens have been given an allowance for the majority of their life, having a job would only further their knowledge about how to handle their earnings. Giving children an allowance creates adults who are responsible and smart when it comes to money, allowing them to lead happy, healthy, and prosperous lives.