YES ALLOWANCE

Allowance Basics.

An allowance can be a great way to teach kids money management skills and help them learn how to make decisions, deal with limited resources, and understand the benefits of saving and charitable giving.

              There’s no single correct way to handle giving an allowance. Deciding when to start ,how much to give, and whether you want to link the allowance to chores are  that should fit your family.

Starting an Allowance.

No particular age is best for every kid, but  consider starting an allowance by the time  a child is 10 years old. By then ,most kids have had  experience  making thoughtful spending decisions  but still look to parents for guidance.

How much allowance  should you give? It depends on your financial situation and what kind of commitment you feel that you can comfortably keep. Experts generally recommend that kids get Tsh  500 Tsh to 1000 per week for every year of their age-Tsh 450 to 900 for 9yrs old ,for example

Regardless  of how much you choose, give the allowance regularly  and  increase the amount as your child gets older

Allowance and Chores.

Should an allowance be tied to chores? Again, it’s a personal choice. Some experts  think that it’s important to make this connection so that kids learn the relationship between work and pay. Others say    that kids should have a responsibility to help with housework, above and beyond any financial incentive.

Ultimately, you must decide  what works best for you. Whatever you decide, be sure that all parties understand the arrangement.

If you give an allowance for doing housework, make sure that your kids understand   what their responsibilities are and the  consequences of not doing them. You might want to involve them in choosing  the chores  and then keep a chart posted to remind them what needs to be done.

It’s  important to be consistent. Following through  on your promise to give a regular allowance sets a good example for your kids and is incentive for them to honor their end of  the bargain . If you don’t keep up with the allowance, they might lose that incentive and stop doing the chores.

Using an Allowance.

How should  kids spend their allowance? It’s good to have them use it for  discretionary things, not essential purchases such as food, clothing .This lets kids make buying decisions –and mistakes-without  dire consequences.

You might want to encourage  kids to put away a portion for charity and another portion for savings. If so, let them choose where to donate  the money. It  may be a cause that a child can relate to in  some way, like an animal shelter or a group that  helps sick  kids.

If  some of the allowance  goes to  savings, consider setting  up  an  account  at a local bank. This way, your  child   can keep track of the money. Many  banks offer special  bank accounts for  kids, and yours  may enjoy  the  experience of getting mail, even if the mail is a bank  statement.

Beyond Allowance.

Once kids become teenagers, you might want to provide a  quarterly clothing allowance  in addition to the weekly allowance.

If you do, establish a reasonable budget  and allow your kids to spend it as they wish – but also to honor its limits. If your son chooses  to buy a 9000  shirt and your daughter opts for a pricey handbag, for example, they might have to   make  compromises  on other clothing choices.