Allowance plan


Published on

Why should children have an allowance plan

Published in: Education
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Allowance plan

  1. 1.
  2. 2. Children should not be given pocket money because…..  They do not know how to spend money  They will lose it  What if they use it to get into bad habits?  It will spoil them Which of the above do you agree with?
  3. 3. Compare this to riding a bicycle • Do you not want to teach a child to ride a bicycle because –He doesn’t know to ride? –He will fall down? –His cycle will get scratches? –He will become independent?
  4. 4.
  5. 5. What lessons should an allowance plan teach children? • They do not have an endless supply of money
  6. 6. What lessons should an allowance plan teach children? • How to make choices when faced with multiple options
  7. 7. What lessons should an allowance plan teach children? • Working towards a long term goal has its share of challenges, pains and pleasures
  8. 8. What lessons should an allowance plan teach children? • You have to earn your stripes
  9. 9. The basics Give your kids a regular allowance
  10. 10. The basics Agree on the rules • What it does cover • What it does not cover • What kids should NOT do with the money
  11. 11. The basics Give kids a free hand in deciding what to do with their money
  12. 12. The basics Resist temptation to change the rules
  13. 13. How often? •Weekly or monthly
  14. 14. How often? • Make it a religious practice – allowance plans don’t work if not consistently given
  15. 15. How often? • Older children can be given a bank account that they can operate, and you can transfer systematically to that account
  16. 16. How much? • It should NOT be –An arbitrary number – like Rs.100 every week –What friends are getting
  17. 17. How much? • Instead, it should be realistic – Lay down the rules on what the allowance should cover – snacks, transport, gifts for friends and family, clothes and accessories – Add up how much you would anyway spend on that (make sure you include both regular stuff and one-off stuff) – That should be the allowance
  18. 18. How much? • When you change the rules, change the allowance
  19. 19.
  20. 20. How to make it work • Encourage children to make four categories –Spending (NOW) –Saving (LATER) –Investing (MUCH LATER) –Sharing (OTHERS)
  21. 21. How to make it work • Give them guidelines, but resist temptation to make decisions on their behalf
  22. 22. How to make it work • Allow them to make mistakes
  23. 23. Should allowances be tied to chores? • Not for regular chores – Children are expected to contribute to household work not for money, but because they belong to the family – Chores should be linked to age and what kids can do, and not to money
  24. 24. Should allowances be tied to chores? • If they are saving up for something big, offer extra money for extra work around the house
  25. 25. Dhanashiksha Educational Ventures 6B, K.G.Towers, Velachery Bye Pass Road, Chennai - 600042 Phone - Office - 044 – 45493310 / 044-22593260 | Mobile – 98840-70750 Email: | Bangalore J-02, Diamond District, Old Airport Road, Kodihalli, Bangalore - 560 008 Phone: + 91 81056 70749 Coimbatore 176, Second Street, Gandhipuram, Coimbatore 641 012 Phone: + 91 98433 79872