As parents, deciding the important periods of your children’s’ growth can be a difficult task. One of such periods includes when to start and stop giving allowance to your children as they grow up. This can be really problematic seeing that the rising cost of living in Singapore makes it almost impossible for kids nowadays to eat out without receiving some extra cash from their parents. Since that is the case, how should the youth deal with money problems in this time and age? Today, we shall take a look at this pertinent question, and ultimately help you decide how to manage your children’s finances.
First off, parents should ask themselves the question: “When do I intend to stop providing my child with their allowance?” If you as a parent are willing to provide your child with money to spend on things besides food then perhaps you should consider a different approach. If you want your child to grow up with the right values when dealing with money, providing them with excess allowance would merely feed them a different view when it comes to money and how it is being generated. Kids should be taught from a young age that money doesn’t come without work and this should be enforced throughout their schooling period.
Allowance should ideally be given such that it suffices to feed your child in school and nothing more. True, it is almost impossible to work while studying if your child is studying in Junior College and Polytechnic, but that stops when the school holidays come. If your child is sufficiently caught up with their school work and assignments, then working during the school holidays to support their own expenses should be encouraged. The problem is once your child reaches the university level, it is safe to say that their expenditure will be a lot higher due to transport fares, apparels, and even food expenditure. When that day arrives, you have either two choices: provide your child with allowance for the aforementioned so that they don’t have to juggle their studies and work, or provide them with only a minimal amount of money that covers their basic needs.
Ideally, as parents, you should encourage your child to go out into the world to experience all sorts of jobs so they can get an idea of how difficult it is to earn money. There are other alternatives of course, like encouraging entrepreneurship in your child and getting them to start their own businesses. With the internet providing tons of opportunity today, your child could choose to be a freelancer to earn extra income or even attempt to turn their social media into a business model. The bottom line is as parents, the decision of when to end your child’s allowance will depend on what values you wish to bring across to your child. Try your best to put a balance on your child’s wants and needs and it’ll help them bring about a sound foundation in money management when they grow up.