Money Talk With Slater

Making Money Across the Board

Getting Real About Allowances

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.


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