Money Talk With Slater

Making Money Across the Board

Monthly archives "October 2017"

Getting Real About Allowances

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Roughly 7 out of 10 parents give their children an allowance, according to a recent survey. On average, children in America receive around $68.00 per month ($814 per year), increased from about $65 per month in ’12. About 1 in 4 children gets $100 or more every month.

More than 50% of parents do this to teach their children that money must be earned. Some parents pay their kids per chore.

Nonetheless, since parents give out the allowance, they should be aware of some of these typical mistakes.

You’re obsessed with how much you’re giving the kids

Parents usually get caught up on how much they pay their kids. However, the amount matters less than the fact that you’re using an allowance as an opportunity to talk about money and how to manage it.

The most basic tool for teaching your kids about money is by giving them an allowance. Use it to get them started on understanding the concept of handling and talking about money, particularly about spending and saving it.

You offer an allowance to your son but not your daughter

While around 2 in 3 men say they received an allowance when they were a kid, only about half of women says the same. Experts say they still see this trend today. All experts agreed that this is highly unfair. Sons and daughters should be treated the same when it comes to getting an allowance.

You give the money with no strings attached

When you give your children an allowance, you should make them save some of it. This teaches them to save over time for items that they want and postpone instant gratification. It will also aid them to develop saving as a practice. It is recommended that children save around 1/3 of their weekly allowance.

 

Benefits of Letting Your Child Have That Lemonade Stand

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We love inspiring children to be creative and passionate. When it’s warm outside, it’s the ideal time of the year for your child to open a lemonade stand! Lemonade stands are loads of fun and they teach children some important lessons.

Lemonade stands can be as simple or extravagant as you’d like. A common folding table and sign will work, or you can craft a custom shop. All you need do is set up in an area with a good amount of foot traffic and offer your goods to thirsty customers.

Here are the advantages children get out of having their own little business.

It exposes them to success

For many folks, the largest motivator is success. Once they have had a taste of achievement, they’ll want more. It doesn’t matter if they enjoy bringing in sales or creating an awesome product, they’ll increase their desire to succeed.

It puts their imagination to work

Designing and constructing a lemonade stand is a lot of work. Children will need to shop for ingredients, choose their recipe, make signs, and make the stand with plenty of appeal and flair. Then they get to use their ingenuity to come up with imaginative ways to draw in customers.

It helps them understand finance

Regardlss what we end up doing in our life, we have to have basic knowledge of finance. With a lemonade stand, they will learn about economics, such as how to calculate costs, how to figure out their losses or gains, and how to set a price. Moreover, they’ll get a true appreciation of the value of a dollar once they learn how hard it is to get one.

It builds independence and self-confidence

Help you can, let the children do all the work and only help by offering advice. You want them to feel a real sense of ownership with this project. They’ll learn how able they are and how hard work can get them where they want to be in life.