Giving children an allowance is one thing I am trying to balance. I keep asking myself what the reason is for giving them an allowance since the child is living under their parent's care and they provide everything for them. I am of the opinion that since parents clothe them, feed them, pay their school fees and give them a comfortable life, there is no need of paying this kid’s allowance. I have this uncle of mine that always gives their kids allowance at the end of every month. He pays them their monthly allowance one day. I asked him why he places the kids on monthly allowance because he provides everything for the kids. His answer was he sees that allowance as a valuable way to teach them responsibility and how to manage finances at an early stage. In a way, I see reason why it is not totally bad to give them allowance. At the end of every year these kids will break their saving box, and they will be able to save up enough money. With this foundation, they will manage their finances very well in the future.
In the world we are into, kids are exposed to money; for instance, snacks at school. It is not totally bad to place these kids on a monthly allowance; it will help them to have a clearer understanding of how to manage money in real life and how money works. They will understand that money should be built; that is why choices matter. They will get to understand the importance of saving and investing.
Before now I didn't pay the idea of giving kids allowance, but after living with my uncle I get to understand that there are many ways to teach kids. My little niece and nephew learn the importance of budgeting and planning. At the end of every year, their dad buys shares for them from the money they were able to save. Must time be amazing of how determined these kids are? They don’t spend their money unnecessarily; before bathing, they will always think before spending. Giving them an allowance will help them to learn financial discipline early, and when they are adults, they don’t need to struggle with how to manage their money.
When these kids are given allowance, they don’t need to ask their parents for money over everything, which is at an early stage; they learn to be independent. Which will help them when they are adults with a small amount of money; they will be able to manage, and they will be able to survive without depending on anyone. At this stage parents need to guide them to save, plan and spend wisely.
Just like my uncle, he was giving them allowance with purpose; he never gave them unlimited money without structure. I have to learn from my uncle, kids. He bought them three boxes: one for spending, one for saving and the other one for generosity. It has really helped these kids many times I go to them for financial advice.
There are some parents that link allowance to chores, and that is amazing; it helps to teach the kids that money is earned through hard work and effort. It helps the kids to understand both responsibility and earning. The most important thing is the value attached to the money, not the amount itself.
It is not about giving them the allowance as a parent, but balancing and guiding them matters.
All image are generated with AI
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