From TODAY, Voices
Thursday November 6, 2008
By Dr Bill Maier
Sometimes, it seems easier to just buy our kids what they need, rather than give them an allowance and expect them to budget.
But the easiest approach isn’t always the best.
Some friends started giving their kids weekly allowances during grade school. They taught their kids to set aside a portion for their tithe, and another for savings, then they could spend the rest on whatever they wanted.
It didn’t take the kids long to see their bank accounts grow, making them want to save even more.
The allowance was a small amount each week, but it taught the kids a great lesson about budgeting – not to mention the power of compounded interest.
Their oldest boy is about to get his driver’s license, and his savings will go a long way toward perhaps buying a good used car.
Everyone has to learn how to live within a budget, and kids who learn it when they’re young will have a huge advantage in life.
A regular allowance is just one of many good ways to do that.
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