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Money Tips for Parents with Kids

Money management is something that everyone should know, and children are no exception. As parents, it is important to instill values of respecting money and learning financial responsibility at an early age. Very young children will often ask for toys or other items as parents walk through a retail store. It’s never a good idea to simply give in to children whenever they ask for something. This teaches them that they can have anything they desire without earning it first. Instead, have your children “work” towards a goal like a toy by earning an allowance, or getting good grades. While there is a debate over what age to begin allowances, most experts feel that the age of eight is an appropriate starting age. As soon as kids are able to do some chores, an allowance can accompany it.

There are several chores children can do to earn a small allowance. Every day household chores like doing the dishes, taking out the trash, making the bed and keeping a clean room can be a few things they can do to earn some extra money. Of course, some parents may argue that a clean room should just be part of the territory. Other chores include yard work or helping dad around the house, although these types of chores are usually reserved for slightly older kids. It is really up to the parent to decide what chores they feel their child should be responsible for. The amount of money that kids receive is also an individual family’s decision. Some parents will give about $5 for kids to mow the lawn, while the dishes and household chores can be added up to a weekly allowance. Most allowances range anywhere from five to twenty dollars. Typically the older the child, the more money they may receive.

The purposes of giving allowance money to kids are two-fold. First, it’s always good to teach kids the value of hard work and helping others. This encourages them to work hard later on in life. It also gives them values and helps them to become productive, and keeps them away from sitting in front of the television or video game console all day. The other purpose of an allowance is to show children how to save their money in order to buy the things they want. If we teach children to save money at an early age, they have better chances of keeping their credit rating higher when they get older. They will also have a better chance of being able to save money for a home or car. Instilling important values about money, responsibility, and hard work are something that all parents should strive to do. Have your children put away a portion of their allowance each week into a piggy bank, or set up a savings account for them where they can go and deposit their saved cash. Write down a goal on a chalkboard, such as a video game or a bike, and then keep track of how much they’ve saved over time. This will give kids a goal to work towards and a better understanding of how saving money can benefit them.

·       Money Tips K5-Grade 5 – Government-related links about money for children aged five to fifth grade.

·       Talking to Your Kids – A guide for parents to discuss finance with kids of all ages

·       Managing Money – Information about teaching children savings, money management, and more.

·       Kids and Allowance – What a few experts are saying about age appropriate allowance and when it should be given to children.

·       Age Appropriate Chores – Explains what an allowance should be, what ages are appropriate for which chores, and the significance of allowance.

·       Deciding on Allowance – Giving kids an allowance is a big decision; Here is more information to help parents decide whether or not to do so.

·       Teaching Kids About Money – Some tips for explaining savings, finance, and money in general to kids of all ages.

·       Saving Early – Discusses the importance of teaching children to save their money at an early age.

·       Managing Money – Helpful information written for kids to read. Discusses savings and managing money.

·       Chores – How to motivate children to do their chores around the home; this is a common problem for many parents, and here is some advice on how to help improve the issue.

·       Payjr – Online allowance and chore system that parents can actively pay into when kids do certain chores.

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