The Benefits of Providing Your Child with an Allowance

As parents we’ve all been there, your child wants to buy the hot new toy on the market and asks for money. You can agree and take them to the store to buy it, or you can encourage them buy it with funds earned from their allowance. But what’s the benefit of doing so? Rewarding your child for completing chores with an allowance can provide you with some much needed down time and not to mention cheap labor, and can also provide them with some valuable life lessons like the ones below!

Teaches Finances.
Teaching children about money is not always easy. But giving them money and having them learn first-hand on how to save and when to spend will help them learn faster.

Teaches the Value of Money.
If you require your child to do chores to get an allowance, then it will teach them that money is earned from hard work.

Learn to Set Goals.
You can teach them the importance of setting a goal for what they would like to purchase. They will quickly learn what it takes to save and reach their goal.

Gives a Sense of Responsibility.
When your child is assigned certain chores and tasks to earn their allowance, it gives them a sense of responsibility. They will learn the importance of getting their job done, and done correctly, to be rewarded.

Helps with Decision Making.
Having the independence to purchase whatever you’d like with your money requires your child to make a decision. They will learn how to decide which item to buy based on the amount of money they have and the need or desire of the item. Allowing them to make their own decision is empowering.

Whether you decide to give your child an allowance or not, learning the value of money is a benefit for all children. Make it dynamic, make it fun. Set your child up with a solid understanding for the future.
The material provided on this website is intended for informational purposes only. Links to other web sites are provided for reference and do not constitute a referral or endorsement by Pioneer or its affiliates. Please note that such material is not updated regularly and that some of the information may not be current. It is recommended that you consult with a financial professional for assistance regarding the information contained herein.