In today’s world, common sense has become hard to find, especially when it comes to money. But as parents, we can help expose our children to the financial lessons and disciplines needed to successfully handle money later in life. That’s right, I’m talking about giving them an allowance.
An allowance teaches your kids how to value money. Instead of simply giving an allowance, have them earn it through various chores. By having them earn an allowance, we can begin to teach them to understand the value of their money. My teaching moment happened at a store when my son found an expensive toy he liked. I explained how much allowance it would cost and how much he’d have to work to earn it. I then compared it to another smaller toy he liked that required less of his allowance. He instantly understood the difference in cost, and how much better it is to be frugal with hard-earned cash. I’ve also noticed a lot less complaining and a lot more enthusiasm come chore time!
It’s never too early to learn how to save. A savings account for your child might seem crazy to think about now, but the earlier your child starts saving money, the better off they will be. Instilling in them a strong sense of responsibility goes a long way later in their life. According to a recent survey, 72% of Millennials have less than $1,000 in savings – and 33% don’t have a savings account at all. Letting your child set goals for saving money, or even teaching them how positive interest works, can encourage them to save their money rather than spend it.
An allowance can teach your children to tithe. Learning to handle money early on teaches your child many positive traits, but most importantly, it allows them to tithe. Though giving a few small coins might not seem like much in the church’s budget, we remember the lesson Jesus taught on the widow’s offering: “Many rich people threw in large amounts. But a poor widow came and put in two very small copper coins, worth only a few cents. Calling his disciples to him, Jesus said, “Truly I tell you, this poor widow has put more into the treasury than all the others” (Mark 12:41-43). God has also promised that all seeds sown for the Kingdom, no matter how small, will be returned many fold. It’s never too early to start giving to God, and seeing how He blesses your child’s tithe!
And the lessons you teach your children today will carry over into many aspects of their lives. Learning how to handle themselves financially will provide benefits in other areas as well. Callingpost, for example, uses a credit system that works exactly the same way as an allowance. Proverbs 22:6 says “train up a child in the way he should go: and when he is old, he will not depart from it.” Applied to allowance, we can teach our children good habits that will last the rest of their lives!