Child Money and Character Building.

I have a niece who is at her early ages knows already, how to save money, Every time I give her a money, she put some part of it in her piggy bank, I said, "that‘s good, you know already how to save money”, so, I gave her a piggy bank much bigger than on her own piggy bank.

The opportunities to learn how to save and spend money are a stepping stones toward character building.

If you heard the testimony of some successful entrepreneur, they said, at their young ages they know already how to save money because of financial problem, when their parents give them money they save a little of it, so, when their parent fail to give them an allowance, they have money to use by. It’s a preparation attitude for a tomorrow, now, they are a successful businessman.

When should the children be taught about money?

For me, when they reach at five years old! At this ages they can already appreciate money which is, can buy a food and toys. Money management can be taught at this age up to early adolescence stage, it is better for children to learn this early, when mistake are less costly and when parents can give them guidance.

Allowance refers to a small amount of money given for extras and necessities. A regular allowance can be a very good and effective tool in teaching as long as parents clarify what they will provide and what the allowance is to be used for, if parents do this, they young how to set priorities between needs and wants.

No matter how little money you've got always save a little, like my niece.

We have to encourage our children to spend their allowance, on need first and to limit their spending, in this way they can save money.

We have our own ways on handling allowance for our kids, however I have share some guidelines for effective allowance management.

Here are 7 guidelines on effective allowance management.

1. Keep the purpose of the allowance simple and limited for our kids, we cannot expect them to produce a complicated budget plan which includes hard predicting items.

2. Start small, and then adjust their allowance little by little instead of overwhelming him with too much responsibility.

3. be dependable, they need to be able to expect allowance on a regular basis, on the same day each week. Planning is possible only within the stable framework.

4. Adjust the allowance to your own household; learning has to start on something, no matter how small it is.

5. Do not link house chores with the money or allowance, our child should know their role in home as equal partner in the family task, not a paid worker. But, there is nothing wrong in giving a bonus for special job outside of the normal line of duty.

6. Avoid using allowance as a lever to extract desirable behaviour, if parents offer a cash depending on the child conduct, this encourage them to view money as a tools for approval, and for rejection.

7. Avoid offering advances too quickly. Deficit spending is no healthier for children.

Having to learn how to handle allowance or money at early age, allow our children to develop the value of allowance which is character.

How do you manage the allowance of your children? Hope these guidelines I have shared will help you.