You may be wondering how to use a children’s allowance to the best use for your kids? As a parent, I know how much of a hassle it can be when kids ask you to buy them the latest toy or fad. A big majority of the time I just give in and purchase the item they are want. I’ve been thinking, I’m currently give my child an allowance, how come it is all gone so that I have to go buying everything for them?

I decide to investigate a bit further into this situation. I then go and ask my son what he has spent on the children’s allowance that I give to him on a weekly basis? My son tells me he uses all his money on confectionary and chips everyday and by the time the weekend arrives, he has no more money to spend on.

I then realized that I was only giving a kids allowance because all other parents were doing it and thought it was the right thing to do. As I looked into it further, I found that allowances for kids are given so they can understand what to do with their money in a responsible way. I think I have just missed the boat here completely by not giving any advice to my child on how to use his pocket money properly.

What I now do is have a weekly meeting in regards to allowances for kids. At the beginning of each week, we generate a budget and pit aside part of the money to saving and the other part to spending. I would highly recommend saving at least 10% of the pocket money.

Ensure that you communicate on a consistent basis what your child decides to do with his savings? If it’s something that takes about twelve weeks to save on 10% of savings allocated, you can advise them that if they want the toy quicker, the can put a larger proportion of their money into their savings account.

You can try this technique with allowances for kids and you will soon see your child heading towards saving more of their money so they can reach the amount they are striving for. Once they have reached this, they will feel more confident of what they have achieved then if you had bought it for them instead.

Another strategy you could utilize is if they save $100 in their savings account, you’ll match them dollar for dollar when they reach this amount. It will give your child more incentive to save, rather than spend their money.

Try to make a children’s allowance fun so your kid will enjoy learning about saving, budgeting and even earning money later on. This will develop great money habits for the them which will benefit them greatly later on as their financial responsibility increases when they become a teenager, then later on in their adult life as well.

We need to do something today for our kids! Saving money is an important topic to learn about, you can find information at our website. Children’s Allowance Teaching kids to save money is challenging and enjoyable for your child.