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Allowance Fundamentals



Granting your children allowance can be a difficult decision.


Some people believe that giving an allowance for a job well done will teach children about the value of money. At the same time, other people think that children should do their part in the household, whether or not they will be rewarded.


So, here is some information that will help you decide on whether to give your children an allowance or not.



To allocate or not to allocate? That is the question.


There is an ongoing debate between parents and professionals about the positive and negative effects over the allowance. The debates discuss several factors:

  • The right age.

  • If chores should be rewarded with allowance or not.

  • How much money to give them and how often.

Of course, there are also those who are against giving an allowance and believe that it could harm the child's sense of a family unit.


As a result, we will offer you the both sides of this story, so you can make an informed decision.



The right age for the allowance.


We have come to the conclusion that there is no "right" age for granting an allowance.


The true right age is when you consider that your children are responsible enough to understand what money is, what it is for and why you chose to give them money.


When children understand that money buys the things they want, and the parents don't just "go and pick them up from the store", they will most likely be able to understand the concept of money. This is also a good time to learn more about savings, spendings, and the value of things. For example, if they want to buy a more expensive video game and have only 5 EUR, they will learn about the importance of saving to buy something they really want.


This learning period is what worries some about the idea of ​​granting an allowance - the child's financial maturity.



Money for doing chores or not?


This is a very debated discussion even for parents who agree with the allowance.


Those who agree with the reward for helping believe that the children will benefit from the experience of working for their money. On the other hand, parents who do not agree with tying help to money, feel that in this way, children will miss the importance of being part of a family.


Linking an allowance to a child's chores has the ability to teach them the value of hard work and how the society functions. At the same time, it is good for children to know that they cannot have money without work, so that they do not become spoiled. A good suggestion would be for children to be paid only for things that are out of their normal norm. For example, doing the dishes or disposing the garbage should be a daily responsibility, whereas wiping the closets of dust could be seen as "additional help" and can earn the child money.


The other side of this argument explains that in this way the true meaning of being part of a family will be lost. Being used to be paid in exchange for helping could lead the child to refuse to help at home or in society when he will not be paid for the task. In this case, the solution would be that, when you pay the children to help you, you should also make sure that they understand that they are part of a family and that they would be expected to help regardless of monetary rewards.



How much money and how often?


If you decide to give your children allowance, you can use some of the below recommended suggestions for how much and when.

 

How much money?


1. 0.5 EUR per task - This is used especially for young children with a blurry understanding of the monetary system. A small amount is given each time a child helps with a chore. The amount and type of work will increase with age.


2. 1 EUR per year of age - This is an easy way for some to determine the amount of money they need to give a child. (For example, a 10-year-old might receive 10 EUR a week.)


3. Enough to cover expenses - If you continue to pay your children allowance closer to adulthood, you should make sure you give them enough to cover their weekly or monthly expenses.

 

How often / when?


1. Once a week, unconditionally - The child is given a basic allowance every week, regardless of the work they do. This is the method usually chosen by parents who are against correlating help with an allowance. Additionally, you have the option to withhold the allowance for that week if the child behaves inappropriately.


2. Daily, conditionally - A small amount of money is given to the child at the end of the day if their chores have been done for the day.


3. Weekly, conditionally - Parents who choose to associate the allowance with chores usually give it to their children on a weekly basis, provided they successfully complete all chores of that week.


4. Per task - Each job will have a monetary value, and the child receives an amount after the task has been completed.



Regardless of the option or combination of options chosen, you must constantly make sure that the chosen amounts are in line with the family budget. As a result, you can adjust the allowance constantly, depending on your family budget, and everyone will be satisfied and smiling!

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