Financial Training For Our Children
Allowances
The little guy comes in to Kempo class and sees a cool new colored t-shirt hanging on the wall.
‘MOM…I NEED THAT SHIRT’.
If you are a parent, you have experienced this utter panic of desperation from your child. The ‘I Need That’ statement is always ill timed and at a decibel level to wake the dead.
There are 3 responses parents use normally:
How do they get their own money?
There are 2 ways to get money into our children’s hands.
Allowance tips for parents.
We as parents need to use caution on giving kids allowance on a performance basis. I have seen this style backfire drastically. The children learn that they should be:
Earnings
I like this system. It teaches children:
Allowances
The little guy comes in to Kempo class and sees a cool new colored t-shirt hanging on the wall.
‘MOM…I NEED THAT SHIRT’.
If you are a parent, you have experienced this utter panic of desperation from your child. The ‘I Need That’ statement is always ill timed and at a decibel level to wake the dead.
There are 3 responses parents use normally:
- NO…as a parent we usually do not want to say no but in the moment, we are trying to get ready for Kempo class. No is the easy answer.
- Okay…the easiest way out for sure. But then we risk having a Spoiled Child.
- YES, YOU BUY IT WITH YOUR MONEY…great parent move!!!
How do they get their own money?
There are 2 ways to get money into our children’s hands.
- Allowance
- Earnings
Allowance tips for parents.
We as parents need to use caution on giving kids allowance on a performance basis. I have seen this style backfire drastically. The children learn that they should be:
- Compensated for doing household chores. (It would be nice if my wife would pay me for doing the dishes…I probably would not make much money in that scenario).
- Chores can be negotiated for allowance.
- This system does not resemble real life. (It does teach negotiation skills)
Earnings
I like this system. It teaches children:
- Financial gain comes from effort/work.
- You are in control of your own financial wealth.
- Teaches kids to be a creator as opposed to only consumers.
- I feel that teaching children to solve problems themselves helps them exponentially as an adult.