When it comes to knowing how to teach your children about money, there’s no one right answer. That’s because every family’s financial situation is different, and therefore there isn’t one “ideal” method or perfect allowance system to uphold. However, there are some lessons that can be generalized to a good effect, which is that you shouldn’t give your child too much spending money—and here’s why.
Teaching Them About the Value of Money
Your child is going to eventually grow up and enter the workforce, and maybe even one day start a family as well. They’re going to be responsible for making a solid income and contributing to supporting a household. If you give them too much spending money, they’re going to grow up thinking that it’s all going to come easy—which is far from the case.
Life isn’t easy, especially when it comes to finding a job and making money. They need to learn the value of making money, and that stems from having a good work ethic as well.
Of course, it’s not always easy to know how much “too much” spending money is. Again, it really depends on your family’s financial situation. But at the very least you should be aware that you should monitor the amount of allowance that you give your child, and encourage them to get a part-time job.