Money Talks: Should Your Child Have An Allowance?
Most financial experts believe that children should receive an allowance. The earlier children are taught financial skills, the better. Money management is a skill that many adults struggle with. By teaching children early on how to manage their money, it can go a long way into their adult years.
Allowances also give children an appreciation for the value of their money. If they are spending someone else's money, they are less likely to be concerned about what it is spent on and how fast it is spent. When children have earned their own money, they tend to be less inclined to spend their money frivolously.
What Age Should Children Earn An Allowance?
Some money experts believe that as soon as children can count, they should begin to earn an allowance. Around the age of 3, children are not only counting, but they are beginning to ask for things. This is a good time to teach children that they can't always have what they want when they want it. The concept of earning something can be taught starting at age 3.
If age 3 seems like too young of an age, then it is a good idea to at least start at an age when children are beginning to understand the concept of money - usually around 7 years of age. If you start too late, it may be more challenging to teach your child money management skills. By starting young, they are more likely to heed your advice.