Teach Your Child Financial Responsibility with These Free Printables
Whether or not you give your child an allowance comes down to your parenting style. However, they can be a great way to start teaching your young ones about money management and financial responsibility.
There’s often a debate on how much you should give your child and at what frequency. For example, some parents like to give their children an allowance that is determined by how many chores they completed. Other parents, meanwhile, will give their children a set amount of money every week depending on age and personal responsibilities. Let’s not forget, too, that some parents don’t believe in allowances at all.
Whether you believe an allowance should be given as unconditionally as your love or think behavior is the main determining factor, these printables can guide you and your child through the allowance process and help you teach them all about financial responsibility.
Kid Allowance Trends
First, let’s go over some common trends surrounding allowances for children. Many parents start giving their children allowances by the time they’re 12 years old. Additionally, most parents give an allowance that fluctuates instead of being fixed.
For the parents who give fluctuating allowances, they determine an allowance on several factors that include the amount of chores done, good behavior, age, grades, and the parent’s salary.
How To Teach Financial Responsibility to Your Kids
The majority of parents agree that teaching their children about financial responsibility is the most important reason to give them an allowance. Although this is the standard, many children don’t save their allowances or learn financial literacy. Help them learn at home with an allowance.
Allowances are just the first step to financial independence and responsibility for your kids. Follow these steps to make sure they use an allowance responsibly.
1. Set Clear Expectations
When you give your child an allowance, you should always discuss expectations and responsibilities with them. If you tie an allowance to good grades, behavior, and completed chores, be sure to let them know exactly what you expect from them.
Also make sure your child knows what they need to pay for from now on. You may take care of clothes and food but they will have to cover extra expenses like toys and video games.
2. Create a Budget With Them
Once you have set some clear expectations, sit down with your children and help them create a budget—whether it be weekly or monthly. By teaching them budgeting dos and don’ts, they can become more financially responsible.
By going through budgeting strategies, you can help set them up for success and develop money management skills as they get older. When first discussing money with your children, go over this needs vs. wants list.
This printable is ideal for kids who are aged 5 to 10. In the printable, there are several items listed that range from “shelter” and “medicine” to “sweets” and “video games.”