If you are thinking about an allowance for kids, you are doing the right decision. It is scientifically proven how children learn better and faster about money management if they get their allowances. But, how much money do you really need to give them? Continue reading and find out what is an average allowance.
Let’s talk about children from 4 to 14 years old. The average allowance for those kids should be approximately $8. That means how your child will earn more than $450 per year! That is definitely a nice amount of money for your beloved child to buy himself or herself something they want. Besides that, they will also learn how to save money.
So, at the age of 4, your child should get approximately $3.7. At the age of 5, that amount should be $4.21. When she or he turns 6, you can raise that amount up to $5.24. You will literally just add a dollar each year while your child is growing up.
Besides all that you have read now, it is a must for you to create a plan as well. What do you really want to teach your child? Set a goal. Do you want to teach your children about savings? Or do you want them to learn to appreciate that hard earned money? The best would be to talk with them as well. You know your child the best. Think of some things in which your child needs improving. Maybe your child spends too much money on sweets. Overall, understanding what you want to achieve together with the allowance is a must.
Once you are in a process of achieving the goal, be sure to stay there and help your children understand how money functions better. Of course, the way you talk with them about money depends on their age.