When your kids understand the difference between each money denomination, they are supposed to be able to determine how much they should pay for ice cream, candy, snacks, etc.
What you should teach them is the responsibility in regards to their personal allowance. An allowance will be a useful teaching tool to pass each money lesson to your kids.
There are several things you can teach by giving allowance to your kids:
The resistance of temptation.
It is important for kids to understand that they have to make choices on what they want as they cannot have it all. They have to train themselves on what to buy, and when.
The importance of savings.
Kids supposed to have their own savings to buy things beyond their allowance. They should wait until they have enough money to buy it. Kids can discipline themselves to save at least 10% of their allowance for their unpredictable needs.
The usage of bookkeeping.
You may teach your kids to take a note of their allowance, savings and expenditures so that they will learn to see how they spend their money. This habit will bring the kids advantages in the future as they will hold more money than an allowance.
The ability of logical thinking.
By giving them the chance to manage their own allowance and freedom to buy what they want with their allowance, you develop the ability of logical thinking on your kids. They will learn how much the normal price of an ice cream, which one is better whether buying books or buying a sticker. By giving them chances to analyse their expenditures, you actually develop their logical thinking.
The knowledge that money has to be earned.
You can offer your kids for some extra allowance by doing housework within their age, such as watering the garden, washing dishes, help you wash the car and else. They will appreciate the money that they earn themselves.
There are still a lot of things to teach your kids about money. It is important to teach them to be responsible as soon as they can understand.
Responsibility is like a habit, it has to be trained and disciplined
What you should teach them is the responsibility in regards to their personal allowance. An allowance will be a useful teaching tool to pass each money lesson to your kids.
There are several things you can teach by giving allowance to your kids:
The resistance of temptation.
It is important for kids to understand that they have to make choices on what they want as they cannot have it all. They have to train themselves on what to buy, and when.
The importance of savings.
Kids supposed to have their own savings to buy things beyond their allowance. They should wait until they have enough money to buy it. Kids can discipline themselves to save at least 10% of their allowance for their unpredictable needs.
The usage of bookkeeping.
You may teach your kids to take a note of their allowance, savings and expenditures so that they will learn to see how they spend their money. This habit will bring the kids advantages in the future as they will hold more money than an allowance.
The ability of logical thinking.
By giving them the chance to manage their own allowance and freedom to buy what they want with their allowance, you develop the ability of logical thinking on your kids. They will learn how much the normal price of an ice cream, which one is better whether buying books or buying a sticker. By giving them chances to analyse their expenditures, you actually develop their logical thinking.
The knowledge that money has to be earned.
You can offer your kids for some extra allowance by doing housework within their age, such as watering the garden, washing dishes, help you wash the car and else. They will appreciate the money that they earn themselves.
There are still a lot of things to teach your kids about money. It is important to teach them to be responsible as soon as they can understand.
Responsibility is like a habit, it has to be trained and disciplined
