When an allowance for children is set up, kids start to understand its importance.
They become familiar spending and saving.
The way in which they behave now can be modified so that when they are on their own, they have the structure in which to handle finances.
Because children see parents using credit and debit cards, they have no clue as to how money is earned.
Make sure they comprehend the money cycle, so that they understand the money spent comes from hard work and a paycheck.
Each family can decide when a child is ready for spending money.
Insure he or she can count, add, and subtract so that there is meaning to what is spent.
Kids should be allowed to pay at the cash register while parents watch to make sure they know how to count out what they receive as change.
Responsible grownups do not carelessly use money.
Though children need to enjoy the money they receive, it helps that they understand how squirreling it away can help, too.
If their belief is that mom and dad have money to spare, they will use it as such.
Allow children the opportunity to learn by giving them their own cash and teaching them to manage it without supplementation.
From there comes the understanding that money is not always available just because one asks.
Invest in a savings account where the child would be able to deposit a portion of their monies each month.
This helps with controlling finances.
Children become awakened to how their money adds up when saved.
Take it a step farther and buy CDs or place some in a money market account.
There are loads of lessons to be learned and independence to be gained from deciding between spending and saving.
Parents should determine if an allowance for children is best by observing their behavior around money.
Giving them money in which they will be responsible is key.
Make sure to guide them and give them lessons to take well into adulthood.