Give priority to the education of our children is something that every good parent should do. That is why financial education needs to be part of growth. An allowance will help them better understand how to manage money and make better financial decisions in the future. This allowance should be based on two parts: the basic allowance and the allowance of commission.

The basic allowance

An allowance makes you think children like to make the best use of their money. Sound familiar? When you receive your salary payment date, you have to decide how you will distribute your money in your needs, your debts and your tastes. A benefit that our children have is that they do not have to worry about the needs, but they have to decide whether to buy an ice cream or candy.

The basis of money management is that this is a scarce resource, and therefore we always have to spend on what gives us more benefits. They will learn has always bought what they give more performance, they take a bad decision, and not learn to take it again with the next counter.

The chores and tasks

Some people incorporate household chores such as justification of the basic allowance, but for me this is a bit trivial. The household chores for children (picking the games, help with cleaning, caring for children) should be taught as a liability and not as part of compensation. At the same time, do homework and attending to the study is part of the primary responsibility for children, and instead of these to be justifications for the allowance should be only part of what they should do as part of the small society is the family. Sure, you can use a little psychology and also use things without monetary value (time to play with friends, watching television) as a tactic to reward (or not) the development of the child.

Go the extra mile (working on commission)

If your child is not only doing what he should do at home / school, but also demonstrates an effort beyond what is required to do their work, this should not be taken as an opportunity to reward their deeds. When the child more than you need help, gets excellent grades and show kindness for others, this should be rewarded for a small financial incentive. Personally, nothing made me study how the expectation that if they took notes over 90 could buy any board game I wanted.

Other things to consider

There are other things you should consider your children when it comes to money, but I also want to read your comment:

* There is NO. Do not do your children understand that if they cry enough will get what they want. If there is a reason I do not want to buy X or Y thing, be firm. But they will know how to get what they want.

* Let them work. If you have the right age to work delivering newspapers, helping neighbors or shop in the family, let them. With the rule that if the grades or chores are not done, no work. Priority.

* If they want something and have an allowance, let them save a certain amount of money to get it. Sacrifice. For example, you save 20% for the game you want and you give 80%, I advise you to use 20% of them to save into your studies.

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