Turning Kids into Financial Geniuses!
Bodie Currier
Have you ever wondered about the pros and cons of giving children an allowance? If you give your kids a little bit of money every week, they will learn to spend it wisely, put it into a bank, and save up for the future. Also, when kids have money to spend for themselves, they can have a much more enriching experience with their hobbies. For example, if a child had had even just a couple of dollars a week when he was younger, he would have been saving and learning much earlier on. Now, he is 15 and learning about finance for the first time. Parents should give their children a small allowance because it teaches them about money, and it lets them follow their passions independently.
When kids have a few bucks at a young age, they will learn to spend smartly much earlier on. For instance, if you are 7 years old and get an allowance, you will very quickly make a bank account, find smart ways to spend your money and start trying to earn your own money sooner than if you never had an allowance. If you didn’t have that opportunity, you might have to wait several years before learning these life skills, and you won’t have been saving up for as long. Just giving your kids a small allowance could grant them years of saving, smartly spending, and financial experience that most kids simply don’t have the chance to get.
When kids have a little bit of money that they can spend, they will spend it on their passions, and end up enriching their life’s experience as a whole. Many of you are probably worried about your kids spending all the money you give them on unhealthy candy and cheap toys. And the truth is, this might happen at first. But in time your children will learn through experience to buy the helpful and fun things that benefit to their hobbies, and someday start holding their own weight. A small allowance will give the children a chance to make their own decisions, and be independent in the things they love and enjoy. This feeling of independence is a feeling that many kids don’t have the privilege of experiencing until later in their lives, but it is just as important earlier on.
A common misconception is: “These kids will just spend your money; leave it to the smart adults!” This can sometimes happen, with the kid spending all their allowance on the cheap toys that you dread, but it's really the other way around. Where do you think the ‘“smart-spending adults” come from? Learning about money and finance is one of the most important skills to start learning early because you will be using your entire life. This small allowance will grow and evolve even when kids stop getting it, improving our future with brighter, more educated, and more fulfilled people. Giving your children just a couple of dollars a week will make them more responsible in many ways, both through rough experience and learning from others.
Parents giving their children a small allowance would not only improve the kid’s financial understanding, but it will also help them be themselves. First, learning to save and manage their own money, will be taking a large weight off the parent’s shoulders. second, they will use the money on their passions, evolving their life’s experience from the inside out. Third, they won’t spend the money on candy, but the things in life that matter most to them. Just imagine, with each kid being raised with a small allowance, bringing confidence, knowledge, and financial security to our future generations. And remember, all this crucial, valuable know-how and life experience starts with just a kid and a few of their parent’s dollars.
