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With the Lunar New Year just passing us by, our young ones would have enjoyed being gifted with red packets or what is commonly known as “ang bao”. It is inevitable that some students tend to compare how much they have gotten, and this may extend to the comparison of their allowance.
Giving children their allowance can be a hard decision for parents. It can be a headache when children compare their allowance with their friends, especially if their friends are getting more than them. But other than that, giving your children an allowance is a great way to teach them how to manage money responsibly.
Pointers you need to keep in mind
Consider their age
Handling money is something that requires responsibility. So, it is not a good practice to give more than required, especially to the young ones. It would be better to buy things yourself and manage their expectations that way.
Consider your child’s needs
Decide on how much to give your children after calculating their needs. Take into account food, entertainment, and travel expenses. If they are old enough, discuss it with them and decide on an amount. You can periodically review the amount given as an allowance.
Consider their capabilities
If your children are irresponsible with money, it is not a good idea to give them large amounts as allowance. Give them just enough to fulfil their needs and ask them to keep tabs.
Your financial situation
Consider your family’s financial situation before deciding on your child’s allowance amount. Spare what you can. There is no need to show extravagance or show off to others by giving more money to your children than what you can afford.
Daily, weekly or monthly?
Decide on whether the allowance is to be given daily, weekly, or monthly. It can depend on your financial situation, your child’s behaviour, and other personal reasons.
Paying them an allowance
Keep it a fixed amount
It is better to keep the amount fixed. It can help you account for it easily in your monthly budget and won’t be an unexpected expenditure. It can also help your children plan how to put the money to use.
Ask them to keep tabs on spending
Ask your children to account for every penny they spend. It is a habit that will always be an asset to them. Check their tabs and see whether they are wasting the money and how they are putting it to use. Advise them on better spending and saving habits.
Budget
Ask them to pre-plan their expenses every month. Ask them to prepare a budget as they can. You can base their allowance amount on this. It is a valuable life skill for your children to learn.
Justify extra money requests
If they are asking for extra money a month, ask them to give a valid reason for it. Unless it is a valid request, it is better not to accept it. But sometimes it is ok to give them a little bit extra for their spending. Consider their previous expenditures and spending behaviour to make a wise decision.
Don’t be too lavish with money
Some parents give their children exorbitant amounts of money as an allowance. When friends talk, they might compare their allowance amount and it can be a headache to deal with in the later stage. Make sure your children know what thoughts you have put into deciding on how much to give them as their allowance. Talk to them and make sure they understand your financial situation and other reasons for deciding on the amount.
Let them earn their allowance
It is ok to ask your children to complete tasks like completing their homework on time, cleaning their rooms, and doing other small tasks at home to earn their allowance. It will teach them more valuable lessons on hard work and they will eventually learn to value money the right way.
Teach them saving habits
Show your children how they can save their money for future uses. Show them how they can grow their money by properly investing it.
What is a good amount of money to give as an allowance?
Even though it depends on a lot of factors, we have suggestions on how much allowance you can give to your children according to their age.
Per Day allowance for children:
Primary 1- 2 SGD
Primary 2 and 3- 2-3 SGD
Primary 4- 2.5 -4 SGD
Primary 5 and 6- 4 – 5 SGD
Secondary 1- 5 – 6 SGD
The above numbers serve as estimated amounts that you can give your kids. Of course, you can adjust the amount as per you deem fit. It takes into account money for snacks and any needs they might have at school. But adjust it according to your personal preferences. It is better not to exceed it by a huge amount.
Teenagers require more money as they would often spend more than the figures we have mentioned above. They will have more needs and expenses to pay for. They will have more travelling and food expenses, not to mention their entertainment expenses will also be considerably more. It is better to give them a part of it as their allowance and let them work part-time or do chores to earn the rest, provided their schedule allows it. It can help prepare them for the future.
We hope the above pointers helped you make the right choices about offering allowances to your children. All the best! 🙂
Exam Smart Tips
Exam Smart Tip #1 – How to Encourage Our Kids to Speak Better?
Exam Smart Tip #2 – How to avoid carelessness?
Exam Smart Tip #3 – Establishing Routines!
Exam Smart Tip #4 – Let’s Read Carefully!
Exam Smart Tip #5 – Beating the Exam Fever!
Exam Smart Tip #6 – How to Eat Right for the Exams?
Exam Smart Tip #7 – How to Avoid a Meltdown?
Exam Smart Tip #8 – Taking Stress out of Tests
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