Teaching Children How to Deal With Money
Many children get to learn about money when they get their first allowance form their parents. The amount of money children get differs from family to family and depends on the budget of a family. Some children get weekly allowances, others get monthly allowances.
Parents should assist children in managing money. They should tell them what they should or shouldn’t buy with it. Family experts state that it is bad to extend the allowance if a child cannot make ends meet and spends too much of it until the month or week is over.
Getting a regular allowance gives children the first opportunity of doing some careful planning of finances. They can save it for a big investment in the future or buy things that their parents would normally not buy for them.In some cases it can be a good thing to pay children for doing useful things around the house. Other parents argue that such work is a normal part of family life.
Saving helps children understand that you simply cannot spend everything you have. It also prepares children for later phases in their life, where saving will become more important.
Not all parents give allowances to their children. They buy the things that children need. Financial experts claim, however, that giving children an allowance lets them handle money in a better way. Which time to start giving allowances to children is a controversial issue. Some family experts suggest that giving a child a small allowance at the age of five is appropriate. Opening up a savings account for children is a great way to make them understand that saving actually increases your money.
- allowance = the amount of money you are given every week or every month
- amount = sum
- appropriate = here: the right time
- argue = to give clear reasons that something should be done
- assist = help
- claim = to say that something is true
- controversial = much discussed
- differ = to be different
- extend = here: to give more
- finances = money
- handle = deal with
- however = but
- in some cases = sometimes
- increase = to go up
- issue = topic
- make ends meet = to have just the money that you can buy the things you need
- manage = control, deal with
- opportunity = chance
- phase = time
- regular = something that always happens at the same time
- savings account = bank account in which you keep money that you need later; the bank pays you interest, extra money, for the money you give them
- state =say
- weekly = every week