Allowance is financial power for the future!
Giving your child a weekly allowance is a great way to start the conversation about creating healthy financial habits that they will carry with them into the future. Help them use their allowance as a tool that will guide them into creating good spending and saving habits.
- Discussion – Have an open dialogue with your child about the concept of spending, saving and investing money.
- Goals – Help your child develop money goals. Whether they are saving money for something special or looking for a balance between spending and saving, helping your child define goals, will set them on the right path.
- Spending plan – Once your child has their goals written down, help them create a monthly spending plan, where they can keep track of money coming in and going out that conforms with the goals you helped them define.
- Divide and Conquer – If you find that your child has many goals with their money, you can help them by dividing their weekly earnings into separate envelopes (or a piggy bank with dividers) so that they are able to put a little money toward each goal.