Whether it’s a few bucks for every A+ grade or a biweekly paycheck-like sum for covering daily chores, giving kids an allowance is one of the simplest ways to impart smart financial guidance early.
Too bad more than one-third of parents don’t see the point in paying their kids for stuff they should do anyway, according to Doughmain.com, and 40 per cent say they only dole out cash when they really need it.
No wonder teens are performing so pitifully in financial literacy courses.
An allowance shouldn’t just be about rewarding children for good behaviour, but tying it to things like chores and grades is just one way to prepare them for the working world–and hopefully keep them out of bankruptcy court one day.
Doughmain offers some great start tips on building an allowance:
• Discuss allowance with your kids and why they are getting it
• Assign both unpaid and paid chores
• Assign age-appropriate chores and advance chore assignments and allowance amount as your kids grow
• Set a schedule (and stick to it!)
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