en
Allowance is provided by parents to support all activities and needs of the child while in school. Whether for lunch or transportation, parents can determine the allowance according to the child's needs based on their level of education and activity.
Want to know more how best to organize a child's allowance up to the components that Moms should consider in the calculation of the allowance? Make sure you check out all the important points in the article below!
A child's allowance or stipend is money given by parents to the child so that it can be used at a certain time such as buying lunch, extra snacks, transportation, or even a drink if the child runs out of mineral water due to heavy activity.
Allowance becomes one of the forms of parental support for activities, activities, and growth of the child from a financial point of view because the child does not yet have income. It is worth noting yes Moms, determining the child's allowance should be done with proper calculations so that the money is really well used.
Giving an allowance to a child is important because the child does not yet have his own income. The allowance will be a tool for parents to educate children how to manage finances early on.
By receiving an allowance, children learn about the value of money, budget planning, and spending. In addition, pocket money becomes a means of learning by which children can understand the importance of saving for their needs or desires.
In addition to supporting the child financially, the allowance also plays a role in building a sense of responsibility towards money. When children are given the freedom to manage pocket money, they will learn to make decisions related to finances.
Accompanied by parents, the child will understand the consequences of the financial decisions they make. So, parents not only help materially, but also prepare them to become independent and responsible individuals in managing finances in the future.
Giving pocket money to children has many important benefits that can support their development. Here are some of the benefits a child can receive when he learns to manage finances earlier:
With a living wage, children will learn to be independent in making daily decisions, including managing their own finances.
Children learn to understand the concepts of managing finances such as planning shopping activities, organizing expenses, and saving leftover cash.
By receiving an allowance, the child gains knowledge of financial value such as the importance of managing money wisely and applying delayed gratification.
When parents give a child an allowance, they will learn to take responsibility for their financial actions and understand that every financial decision they make has consequences.
For example, spending all the allowance given for a week in one day means that the child cannot fast the next day.
Children learn to understand what they can buy and get for a certain amount of money. For example, a child can buy a snack at a cheaper price with a large amount with parents instead of buying a snack every day at the stall.
Encourage children to interact with merchants or make bargains with the money they have. This way, they will understand how money works.
Wonder the same benefits this one? Yes, when receiving an allowance and obtaining the right direction from parents, the child learns to manage emotions and patience because they have to save to get something they want.
Having a limited amount of money encourages children to save and value the money they have more.
When receiving pocket money, children learn to look for innovative ways to manage and utilize the money they have. Children will be more creative in using money.
Giving a child an allowance means that the child receives valuable real life experience. This not only helps the child in managing money but also builds character to be more independent and responsible.
Then, how to calculate a suitable allowance for a child so that it is not deficient but also not excessive? Check out the ways below.
Determining a suitable child's allowance requires several ways. In order for parents to be able to arrange the allowance according to the needs and financial condition of the family, follow the following 7 ways to determine the child's allowance:
To determine the right allowance for a child, moms can do research to find out the average allowance that children of their age receive. Moms, can also see the level of activity density, activity, and price range in the child's school cafeteria.
In order for the child to better understand the benefits and uses of the allowance they receive, invite the child to manage the allowance, including by explaining the function of the allowance to buy additional snacks or transportation.
During determining the amount of the child's allowance, adjust it to the character and personality of the child as this will affect the way they use the money. Should Moms provide a daily, weekly, or monthly allowance.
When setting up a child's allowance, pay attention to and consider the child's specific needs from their school schedule to their daily activities and activities. The child may need extra money for lunch, snacks, up to transportation.
Invite children to participate in determining the allowance they receive. This will increase the child's understanding and sense of involvement in drawing up the allowance budget.
In order for the family finances to remain stable and the child to still earn pocket money, adjust the amount of the allowance to the financial condition of the family. If the child does not really need the allowance, moms can use the money for the child's savings in the future.
Want to know how to choose a child's savings that are profitable and fit their needs in the future? Moms could learn how to choose the right child savings here.
Get in the habit of giving the child allowance regularly and on time. Avoid the habit of giving allowance early or late so that the child learns discipline.
In addition to the 7 ways to determine the child's allowance above, teach the child to save with part of the allowance they receive. This habit will help the child understand the importance of saving pocket money for future needs.
Providing an allowance for children becomes an important part of financial education and also child growth. Moms need to pay attention to some tips so that children can manage their pocket money wisely and sparingly.
Below are some tips for calculating a child's allowance to fit and fit the needs of each child:
After setting the child's allowance, invite the child to use the money to save. Moms can give a piggy bank or open a special savings account for the child.
Already have a child savings account but trouble tracking transactions? Make sure Moms connect savings with FINETIKS personal finance management app, FREE at Google Play or App Store!
Feel the ease of monitoring and developing a child's allowance, download a safe and reliable financial management app now!
