I Need More Allowance

I was never one of those lucky kids who received an allowance from their parents.  But I was lucky in the sense that my mom always bought me everything I needed, and a lot of things I wanted.  I found a pretty interesting article on Money Ning explaining five reasons why you should give yourself a monthly allowance.

Teach the concept of budgeting

– “A regular, monthly allowance works nicely because it consistently reinforces the idea that they have a budget, and they need to find a way to fit their monthly purchases into that budget, because if they spend it all on the first day of the month, they would need to wait an entire month until they have money again.”

Avoid unnecessary purchases

-With the kids getting an allowance, you can still supply all of the necessities (food, clothing, school supplies, etc.), but any extra purchases will be taken out of their own pockets.  That means if they’re just dying for that new Xbox game or that Justin Bieber poster, they’ll have to make the decision of whether they want to spend their earnings on it.  “The beauty of the allowance system is, that when it comes out of their own pockets, the children are much more selective about their purchases. When it’s our money, they want to buy everything in sight, but when it comes out of their own allowance, they think twice before buying an item.”

Teach them to save towards a bigger goal

-One of the best reasons to give your kids an allowance is, it allows them to clearly see that if they delay purchases for a while, they’ll be able to save up for more valuable items.

Teach them responsiblity

-“Now that the children have their own money, they learn responsible behavior and taking responsibility for one’s actions.”

Give them independence

-An allowance is a great way to give your children the feeling of independence.  This is something that they have complete control over – it is their money for them to do what they want with.  “As long as they’re not buying something dangerous or inappropriate for a child, they can do whatever they want with their allowance.”

So were you one of the lucky kids who received an allowance?  Do you give your own kids an allowance?