Somewhere between ages 6 and 8, a new word may enter a child's vocabulary; allowance.
It is also at this age that a child should start to learn the value of a dollar, and the concepts of responsible spending and saving.
Starting this education at a young age is key in raising a financially responsible young person.
The amount of allowance is up to the parent, but it is recommended to match at least half of the child's age.
So, allow at least $4.
00 a week for an 8 year-old.
The child should be encouraged to spend their own money on certain luxuries, like candy, movie tickets, and collectibles.
This way they can learn to control their spending to save up for something they really want, and also gain some independence.
As a rule, they should save at least half of their weekly allowance.
Use a simple checkbook system for the child to keep track of his/her finances.
It's easier if there's a predetermined time for giving allowance, or if payment is made immediately after a job is complete.
It's also good to have a rewards program, but not to tie the reward to regular chores.
Children should help around the house regardless of monetary compensation, but allow them to earn extra money for doing extra work.
A child shouldn't expect to be paid for taking out the trash and washing dishes.
Also, money shouldn't replace pride and affection as rewards for good behavior.
There's a fine line between reward and bribery.
Remember to be a parent, not an employer.
When a child reaches the teenage years, it's time to talk about the household finances and let them know where the family stands financially.
By this time, the young man/woman should have an appreciation for the value of a dollar, and an understanding of working to achieve financial goals.
He/she may soon be ready to get a job outside of the house.
For teenagers, the more responsibility they have for themselves, the more responsible they will have to act.
If they are expected to buy presents for friends and siblings, pay for their own gas, and contribute to college savings, then they'll better learn to manage their money accordingly.
These are just a few lessons and values that need to be instilled in a child by the parents.
Start financial education at home at a young age, and keep teaching through young adulthood.
It is also at this age that a child should start to learn the value of a dollar, and the concepts of responsible spending and saving.
Starting this education at a young age is key in raising a financially responsible young person.
The amount of allowance is up to the parent, but it is recommended to match at least half of the child's age.
So, allow at least $4.
00 a week for an 8 year-old.
The child should be encouraged to spend their own money on certain luxuries, like candy, movie tickets, and collectibles.
This way they can learn to control their spending to save up for something they really want, and also gain some independence.
As a rule, they should save at least half of their weekly allowance.
Use a simple checkbook system for the child to keep track of his/her finances.
It's easier if there's a predetermined time for giving allowance, or if payment is made immediately after a job is complete.
It's also good to have a rewards program, but not to tie the reward to regular chores.
Children should help around the house regardless of monetary compensation, but allow them to earn extra money for doing extra work.
A child shouldn't expect to be paid for taking out the trash and washing dishes.
Also, money shouldn't replace pride and affection as rewards for good behavior.
There's a fine line between reward and bribery.
Remember to be a parent, not an employer.
When a child reaches the teenage years, it's time to talk about the household finances and let them know where the family stands financially.
By this time, the young man/woman should have an appreciation for the value of a dollar, and an understanding of working to achieve financial goals.
He/she may soon be ready to get a job outside of the house.
For teenagers, the more responsibility they have for themselves, the more responsible they will have to act.
If they are expected to buy presents for friends and siblings, pay for their own gas, and contribute to college savings, then they'll better learn to manage their money accordingly.
These are just a few lessons and values that need to be instilled in a child by the parents.
Start financial education at home at a young age, and keep teaching through young adulthood.