{"id":1458,"date":"2015-11-16T10:07:47","date_gmt":"2015-11-16T15:07:47","guid":{"rendered":"https:\/\/dev.sosgarde.ca\/blog\/?p=1458"},"modified":"2023-11-18T16:17:10","modified_gmt":"2023-11-18T16:17:10","slug":"allowance-the-dos-and-donts","status":"publish","type":"post","link":"https:\/\/sosgarde.ca\/blog\/babysitter\/allowance-the-dos-and-donts\/","title":{"rendered":"Allowances – The Do\u2019s and Don\u2019ts"},"content":{"rendered":"Reading Time: <\/span> 4<\/span> minutes<\/span><\/span>

\"Woman<\/a><\/h1>\n

As parents, one of the crucial life skills we aim to instill in our children is financial responsibility. An effective way to introduce them to the concept of money management is by providing them with a regular allowance. However, this practice comes with its own set of do’s and don’ts to ensure that kids learn valuable lessons about budgeting, saving, and spending wisely.<\/span><\/p>\n

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Do’s:<\/span><\/h2>\n
    \n
  1. Set Clear Expectations<\/span><\/li>\n<\/ol>\n

    \u00a0\u00a0\u00a0Be transparent with your children about the purpose of the <\/span>allowance<\/span><\/a>. Explain that it is not just a free handout but a tool to teach them how to manage money. Discuss the responsibilities associated with receiving an allowance, such as completing chores or meeting certain academic goals. This sets the foundation for a healthy understanding of the relationship between work and money.<\/span><\/p>\n

      \n
    1. Encourage Savings<\/span><\/li>\n<\/ol>\n

      \u00a0\u00a0\u00a0Instill the habit of saving by introducing a savings component to their allowance. Teach them the importance of setting aside a portion of their money for future needs or unexpected expenses. Consider implementing a simple savings jar or a piggy bank where they can watch their savings grow. This practice fosters patience and <\/span>discipline<\/span><\/a>.<\/span><\/p>\n

        \n
      1. Discuss Spending Choices<\/span><\/li>\n<\/ol>\n

        \u00a0\u00a0\u00a0Engage your kids in conversations about spending choices. Encourage them to think critically about their purchases and prioritize their needs over wants. By discussing the value of money and the consequences of impulsive spending, you empower them to make informed decisions and develop a sense of financial awareness.<\/span><\/p>\n

          \n
        1. Gradually Increase Independence<\/span><\/li>\n<\/ol>\n

          \u00a0\u00a0\u00a0As your children grow older, gradually increase their financial independence. Allow them to make decisions about how they <\/span>allocate their allowance<\/span><\/a>, within reason. This hands-on experience helps them build confidence in managing their finances and prepares them for the financial responsibilities they’ll face in the future.<\/span><\/p>\n

            \n
          1. Be a Positive Role Model<\/span><\/li>\n<\/ol>\n

            \u00a0\u00a0\u00a0Children often model their behavior based on what they observe in their parents. Demonstrate good financial habits by budgeting, saving, and making wise spending choices. Your positive example will have a lasting impact on their attitude towards money and financial responsibility.<\/span><\/p>\n

             <\/p>\n

            Don’ts:<\/span><\/h2>\n
              \n
            1. Tie Allowance Solely to Chores<\/span><\/li>\n<\/ol>\n

              \u00a0\u00a0\u00a0While it’s essential to link allowances to responsibilities, avoid making it a strict transactional relationship. Children should learn that contributing to household chores is a shared responsibility, and allowance is a tool for teaching broader financial skills. Avoid the misconception that every task is directly rewarded with money.<\/span><\/p>\n

                \n
              1. Rescue Them from Financial Mistakes<\/span><\/li>\n<\/ol>\n

                \u00a0\u00a0\u00a0It’s crucial to let your kids make mistakes and learn from them. If they spend their entire allowance on a frivolous purchase and later regret it, resist the urge to bail them out. Instead, use it as a teaching moment to discuss the consequences of their choices and the importance of planning ahead.<\/span><\/p>\n

                  \n
                1. Make Allowance Too Strict<\/span><\/li>\n<\/ol>\n

                  \u00a0\u00a0\u00a0While guidelines are essential, avoid being overly strict with the allowance structure. Allow room for flexibility and understanding. Circumstances may arise where adjustments are necessary, and being rigid could hinder the overall learning experience.<\/span><\/p>\n

                    \n
                  1. Overlook Regular Check-In<\/span><\/li>\n<\/ol>\n

                    \u00a0\u00a0\u00a0Stay involved in your child’s financial journey. Regularly check in with them to discuss their spending and saving habits. Offer guidance, answer questions, and provide feedback. This ongoing dialogue ensures that your children feel supported and continue to develop their financial skills.<\/span><\/p>\n

                      \n
                    1. Neglect Teaching the Value of Money<\/span><\/li>\n<\/ol>\n

                      \u00a0\u00a0\u00a0It’s crucial to go beyond the mechanics of managing money and instill the deeper understanding of its value. Teach your children about the hard work required to earn money, the importance of gratitude, and the significance of being responsible stewards of their resources.<\/span><\/p>\n

                      \u00a0<\/span><\/h2>\n

                      Questions While Getting Started<\/span><\/h2>\n

                      Need advice on the do\u2019s and don\u2019ts of dolling out cash to the kids? You have come to the right place. Here is your\u00a0guide to your questions while getting started:<\/span><\/p>\n

                      Should I give an allowance?<\/span><\/i>\u00a0Yes. Learning to manage money is a critical life skill. The best way to learn to manage money is by having money. You want to teach them from an early age that they should be saving (between 10 and 20%). Depending on your views, their savings should be for a rainy day as well as putting aside money to help others.<\/span><\/p>\n

                      When should I start an allowance?<\/span><\/i>\u00a0There are different views on this with some parents starting as early as three year old kids but the average is about six years old.<\/span><\/p>\n

                      How much to give?<\/span><\/i>\u00a0The rule of thumb is to give $1 x the age of the kid per week. So a six year old would get $6 per week. But it also depends on where you live and your circumstances. You want to give them\u00a0<\/span>enough money<\/b><\/a>\u00a0so they actually buy things and therefore make decisions.<\/span><\/p>\n

                      Should I tie it to chores or behaviour?<\/span><\/i>\u00a0Again, there are different views on this but many would say that you should not use allowance to punish kids for bad behaviour. Many also believe that allowances should not be tied to chores as kids such contribute to family chores (without payment). Further, you will quickly find that each additional thing you ask them will become a negotiation over cash.<\/span><\/p>\n

                      Should there be\u00a0<\/span><\/i>rules<\/i><\/b><\/a>\u00a0to spending the allowance?<\/span><\/i>\u00a0Probably. If you have rules about what games kids are allowed to play, music they are allowed to listen and movies they are allowed to see, these should not be thrown out the window now that your kids can pay themselves. But this should be balanced by giving kids some control over how they spend as making bad decisions on poor purchases is an important part of the learning process.<\/span><\/p>\n

                      Providing an allowance to your children is a powerful tool for teaching them financial responsibility. By following these do’s and don’ts, you can ensure that your children not only develop practical money management skills but also cultivate a healthy mindset towards earning, saving, and spending. Ultimately, the lessons they learn through managing their allowance will contribute to their lifelong financial well-being.<\/span><\/p>\n

                       <\/p>\n

                      And remember, for all your home support needs \u2013 pet sitters, caregivers (for seniors and for family members with special needs), nannies, babysitters, housekeepers and more \u2013 please visit us at\u00a0<\/span>www.sossitter.ca<\/b><\/a>.<\/span><\/p>\n

                       <\/p>\n","protected":false},"excerpt":{"rendered":"

                      As parents, one of the crucial life skills we aim to instill in our children is financial responsibility. An effective way to introduce them to the concept of money management is by providing them with a regular allowance. However, this practice comes with its own set of do’s and don’ts to ensure that kids learn […]<\/p>\n","protected":false},"author":3,"featured_media":3088,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[880,881,882],"class_list":["post-1458","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-babysitter","tag-allowance","tag-allowance-dos-and-donts","tag-allowance-tips"],"_links":{"self":[{"href":"https:\/\/sosgarde.ca\/blog\/wp-json\/wp\/v2\/posts\/1458","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sosgarde.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sosgarde.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sosgarde.ca\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/sosgarde.ca\/blog\/wp-json\/wp\/v2\/comments?post=1458"}],"version-history":[{"count":3,"href":"https:\/\/sosgarde.ca\/blog\/wp-json\/wp\/v2\/posts\/1458\/revisions"}],"predecessor-version":[{"id":3090,"href":"https:\/\/sosgarde.ca\/blog\/wp-json\/wp\/v2\/posts\/1458\/revisions\/3090"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sosgarde.ca\/blog\/wp-json\/wp\/v2\/media\/3088"}],"wp:attachment":[{"href":"https:\/\/sosgarde.ca\/blog\/wp-json\/wp\/v2\/media?parent=1458"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sosgarde.ca\/blog\/wp-json\/wp\/v2\/categories?post=1458"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sosgarde.ca\/blog\/wp-json\/wp\/v2\/tags?post=1458"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}