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Q: How to teach kids about the value of money?
A: Pay them!
It is better to teach them about money before kids reach their teen years. Distractions and ambitions may cause your teenager to not learn about being responsible with finances. At such a young age giving your kids small amounts of money helps them prepare for the day when the amount gets bigger.
So when is the right time to start the allowance? A child should be old enough to count money and recognize the bills. It is crucial to clearly state the purpose of the allowance. For example, they should know that the money they receive as an allowance is for specific purposes such as: clothes, books, or snacks and cannot be used for any other purpose. Ask your kids to always save a portion of their earnings. Children under the age of ten should not have to pay for their meals at school.
A creative option is to link allowance money to household chores. The argument against this arrangement is that kids should help out around the house without expecting to get paid for it. One should always help their family member regardless of money. Proponents believe that small chores, such as car washes and cleaning, need to be done any ways. So it is better to keep the money in the family and have someone in the house do it.
Children may complain that their allowance is not enough to meet their needs. The main purpose of the pocket money is to teach them to live within their means. On the other hand, a child is also learning the skills of negotiation. Instead of saying no right away, engage them in a conversation. Ask them what they plan to do with their raise? Why is it important to get it now? Remember that getting a raise just to match the amount their friends get is a bad idea. Kids must learn that they have to live within their means.
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Melanz Magazine 
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