Raising Consumer Savvy Kids
A Weekly Allowance Can Teach Your Kids to be Consumer Savvy
If you are a parent, it can be even more important for you to be an example of a consumer savvy individual. As parents we are continually setting an example for our children. Our bad spending habits can rub off on our children and affect their financial stability during adulthood. It is impossible to expect that our children can enter the adult world without ever experiencing basic but important tasks such as budgeting. It is possible to teach your children to be consumer savvy by doing something that parents have been doing for decades-giving their children a weekly allowance.
Are We Giving Too Freely?
Nowadays, not many parents give their children allowances. It doesn’t mean, though, that their children are deprived by any means. Quite the opposite is true. Children today have many luxuries including television sets in their rooms, cell phones, and designer clothing. Kids don’t learn the value of a dollar because they never are required to budget for any purchases. Giving your children a weekly allowance can help them learn to budget and help them become consumer savvy.
How Much is Enough?
There are different schools of thought about how much you should give for a weekly allowance. Generally, you can give $1 for every year. Going by that method, an 8-year-old would receive a weekly allowance of $8.
Carefully consider how much you will give for your child’s weekly allowance before breaking the news to him or her. A weekly allowance can help your child learn money management skills. If he or she wants an expensive item, he can save up for it over the course of several weeks (or months, depending on how much it costs). The surest way to help your child grow into a consumer savvy adult is to give him or her a weekly allowance.