Why Is Money Important To Children

790 Words4 Pages

Who has taught you about money? Was it your parents or school that showed the value of a dollar or loans or what it is like saving for something you want? Most people had to learn the hard way. Whether it is 10 dollars here and there or 50 dollars a week, giving adolescents money leaves a profound effect on their lives. Giving a child an allowance would appear to make sense, but parents should be cautious when giving money to their children due to what their actions can cause. The immense effects can lead to children being irresponsible, having unrealistic expectations, and not understanding reality. According to Lewis Mandell, Ph.D, “Studies have found that giving a child an allowance, particularly a regular, unconditional allowance that …show more content…

Giving children too much money can cause them to have false expectations. They may have an incorrect sense of entitlement and will not understand the hard work needed for things. They also will expect the money to be given to them routinely. This causes them to miss out on learning important skills. For younger kids allowances also may cause a wrong expectation because many are chore based. Feeding the dog or making your bed are basic needs around the house in which you should contribute because you live there. When you are older you will not get paid to make your bed. Specific jobs go above what is expected of you, such as feeding the neighbor’s dog or babysit. Giving children pocket money too early can cause an illegitimate value of the …show more content…

AICPA.org says that, “ Nearly half of parents with kids in school, or 48 percent, pay their kids for good grades.” As you get older, grades are very important for success in order to reach college, but kids’ pay off is making it into college, not making a crisp 20 dollar bill. They should understand that everything will not be handed to them and that work is required. Work is a great way for adolescents to develop and improve social skills as well as hard work and responsibility. It also will provide them with their pocket money. Their realities should consist of truth, which will guide them to be less selfish and more reliable. One of the deciding factors may be when parents think kids are becoming adults. For some, it may be going into high school, but for others it may be when they graduate college. Umich.edu states that, “About 42 percent of college respondents in a study reported their parents helped them pay bills, with the average being 1741 dollars.” Parents are reliable for their children’s well-being, so they feel the need to fund their financial needs completely, which is not necessary. In fact, this can end up diminishing the intrinsic value of work. Giving kids an allowance when as needed seems to be a smarter plan of attack with this issue. This presents the opportunity to teach about money. The parents will be able to talk about loans, value, interest, and budget. Giving regularly

Open Document