| When your kids start asking you for allowance, | | | | car that he likes when he gets his next allowance, |
| you begin to wonder if they are responsible | | | | because he knows that he needs the paint |
| enough to handle money. It is ideal to give | | | | brushes more than a toy car. |
| allowance to kids age 5-6, because they can | | | | • Spend: Another benefit of giving your kids |
| already count and understand the value of money. | | | | allowance is that they will learn how to spend their |
| Giving your kids allowance can teach them to be | | | | money wisely. Your kids will most likely debate |
| responsible with money. Below are the 3 benefits | | | | with themselves first before spending their entire |
| of kids’ allowance. | | | | allowance on a new gadget, because they already |
| • Save: Your kids will learn to save money for | | | | understand the concept of money management. |
| things that they like. For instance, they can save | | | | Money management teaches your kids to be |
| half of their allowance for their stage play’s | | | | responsible with their money and to spend it on |
| print flyers or a birthday cake for their dad. | | | | things that are important to them. For instance, |
| Remind your kids that it is important to save | | | | your kids will spend their money on flyer printing |
| money for the rainy days. Tell them that it is | | | | for their organization’s fund raising to help in |
| good to save a portion of their allowance so they | | | | promoting their cause. |
| can have money for their upcoming museum trip | | | | Practicing money management at an early age |
| or summer camp. | | | | can prepare your kids in the future when they |
| • Budget: Having their own money helps your | | | | are already earning their own money. So it is best |
| kids to discern their wants from their needs. For | | | | to set a good example for your kids so they will |
| instance, your child will choose to buy paint | | | | learn how to save, budget and spend their money |
| brushes for his art classes; and just buy the toy | | | | wisely. |