Student credit card loans and education loans have been a major cause of concern for parents, lately. If you want to stay away from such situations, it would be wise for you to help your child develop good monetary habits. In most cases, children get into the habit of making unspecified expenses because they get excessive benefits.
There is nothing wrong in giving your child an allowance, but you must decide on the amount of money or amount carefully and then make a decision. Parents who cannot decide on the amount of allowance they will give their child can pay attention to the following factors.
Determine Your Children’s Needs
When you decide on the benefits you give your child, you must first complete your child’s needs. Estimate the transportation costs needed to go to school.
If your child is enrolled in other activities such as music, dancing, swimming, or even in any game, you must not forget to include transportation costs for traveling to each training center. Most children have their own bicycles or cycles. In that case, transportation benefits must be reduced.
It is always good to pack your child’s lunch box when he goes to school. However, many working mothers cannot do it because of their busy schedules. Whatever the reason, if your child does not bring lunch from home, you must estimate the cost of food in the school canteen or college canteen and then add the amount to determine the total allowance in this account.
It is good to give your child some extra money to buy some items of his choice or to watch a movie with friends. However, it must be limited and decisions must be made depending on the age of your child.
Make Your Child Develop Money-Saving Habits
Regardless of the amount of money you offer your child as a support, you must encourage him to keep a portion of it. Initially he may not be interested in saving much but with time, he will get the habit of saving. You can start with a piggy bank and then gradually be able to continue to open a bank account for your child. Also for him to understand the value of money so he can decide how to make the best of every penny he receives.
These tips should help give you a better idea of how much to give your child for an allowance. You definitely want to give them enough to learn to manage their money. However, you don’t want to give them too much money since this will give them unrealistic expectations in the future.