Money rules for your children

gboyinwa ajomale

September 26, 2017 10:35 AM

It's not all about given them pocket money but also knowing some early money rules that will develop their financial and monetary skill as they grow older.

Giving children money is not a bad thing to do. The question is do they appreciate the money given to them and do they really know the value of money.

Here are five steps to take to build money rules that make sense for your family.

1. Appropriate age

As a parent, you should know the appropriate age for setting the money rules for kids. Children must attain a certain age before you start discussing money matters with them. When children get into primary school, parents need to ensure they know the concept of saving.

As children in primary schools, most of them think about toys and video games. Let them know these things are bought with money and if they want to get them, they need to save. As they grow older they begin to have a wider knowledge about finance and how to manage monetary issues.

2. Giving allowance

Is it wrong to give children an allowance? Different strokes for different folks. It all depends on parents' philosophy about money.

Though it is not wrong to give a child daily, weekly or monthly allowance, make sure your kids don't have an entitlement syndrome and them thinking they must have an allowance no matter what.

3. Working for cash

As a family, everyone in the household must have a chore to do, weekdays and weekends. Parents should not tie money to household chores. Don't ever make children feel they are doing you a favour by doing chores at home. As far as they are members of a family, it is their duty and they need to engage in chores.

If a child wants to earn money working, when they get to a certain age, they can earn an allowance by doing an after-school job or holiday job.

4. Money growth

Encourage your child to save part of their allowance not because they need to have to get something they desire but to watch their money grow. Teach them the difference between want and need.

Apart from saving for what they desire, they need to learn how to set financial goals, either short or long-term goal.