As kids get older, one important question parents face is whether or not to give their kids an allowance. While it’s up to each family to decide what’s best for their children, here are some benefits to giving your kids an allowance.
Teach kids how to budget
Giving kids an allowance gives them their own money that they can control. They will have to find a way to make their money last until they receive their next allowance and decide what they can and cannot afford to spend their money on.
Teach kids how to limit their purchases
If kids need to use their allowance money when making certain, unnecessary purchases (toys, candy, video games, etc.), they will learn how to limit what items they actually really want. It can make a difference as to how important an item really is when they need to use their money instead of their parents’ money to purchase items.
Teach kids to save up for a bigger purchase
Giving kids an allowance to make certain purchases can teach them how to save. If they are eying a bigger item it will teach them how to put money away to save for the item, and how to budget their allowance accordingly while they are saving up.