Advice from money-savvy parents on how to prepare your kids for the real world.
Every parent wants to do the right thing for their kids, but sometimes it’s hard to know what to do.
Here are some tips to help you make the right decision for your family:
- Help kids learn the ins and outs of saving and earning. There is no substitute for real-world experiences with real money.
- Pay children regularly and consistently. Getting money just by asking for it isn’t the way the real world works and it’s better for kids to learn that fact sooner rather than later. Receiving money on a regular basis is key to making and sticking to a budget. Soon, they’ll learn to make their dollars last. It is no fun being broke. Teach children about saving when they're young–it's never too late to start.
So, what should you use, allowances or chores?
One of the things you can do for your child is have them participate in family chores. Seriously. Paid or unpaid, chores teach skills and responsibility. Eventually, children will need to learn how to do laundry and understand that making time for chores is part of life. Assigning chores now helps avoid disappointment later, when they discover people do not get paid for the tasks of daily living.
Even preschool children can learn to do chores when parents choose age appropriate tasks. Yes, the chores may take longer and young kids might not do as good a job as Mom and Dad, however the child will gain a sense of accomplishment.
As for allowances, some parents make doing specific chores a requirement for getting an allowance. That works for many families, unless the kids think they can do without the money. Other parents do things differently, by giving a small allowance for just being part of a family (sharing the wealth and the responsibilities) and paying extra for certain, additional chores.
It can be called a "base salary" with “bonuses” for hard work (sound familiar?)
The good news is with Verizon Family Money, parents don’t have to choose just one.
Parents can have kids perform paid, or unpaid chores. Here's some tips about setting them up.