Financial Matters: Allowance insights

PORTSMOUTH, Va. (WAVY) - FINANCIAL MATTERS: ALLOWANCE INSIGHTS

What does a child learn from receiving an allowance?

Children learn by watching parents.
They see us go to work to earn money.
They see us at stores spending money.
They may not understand saving and investing.
An allowance lets them experience these concepts for themselves.

What is the right age to start an allowance?

Each child is different.
Let your child experience and understand provision.
Make sure they can recognize currency, count money and execute basic household tasks.
Begin sometime before or at elementary graduation.

What goals and strategies should parents consider when beginning an allowance?

Establish a direct relationship between what they do and what they receive.
Develop a weekly chore chart.
Encourage them to save.
Allow them to make their own spending decisions.

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