By Deborah Nayrocker
Dear Deborah: What are your thoughts on giving teens an allowance? I’m a mother of a responsible teenage boy. — Julie
Answer: That’s great that you have a responsible teen. Did you have an allowance system in place when he was younger?
The time to begin giving our children an allowance is before they are teenagers. As parents, we want to help our children become competent at managing money from a young age.
Children can begin receiving an allowance as early as kindergarten. They can understand the connection between having chores at home and getting an allowance. They learn that responsibility and money go hand in hand. As long as their chores are completed, they have earned their weekly allowance. When deciding on the dollar amount, consider their ages and responsibilities at home.
Although we can offer our children guidance in money matters, it’s up to them to decide how to use their money. An allowance permits them to make small mistakes in a controlled situation. They are capable of making choices and they can learn from their mistakes. Elementary age children can do less financial damage dribbling away their money than teenagers can.
You may want to give your teenager a larger allowance to include clothing expenses. This gives him practice in budgeting for necessities as well as discretionary spending.
Many consumers today are stressing with money issues because they didn’t learn to budget as children and teens. Learning to be financially savvy before leaving home is a huge advantage.
Studies indicate there is a clear relationship between parents’ behaviors and children’s behaviors in handling money. Children observe their parents and learn from them. If parents are good money managers, their children will be more likely to manage their money well.
Deborah Nayrocker is an author and columnist. She is the award-winning author of The Art of Debt-Free Living and Living a Balanced Financial Life.
Copyright by Deborah J. Nayrocker. All rights reserved.