Whether the grants are right or wrong is an issue that has been debated for generations. Now it's your turn, as a parent, to decide that a grant is the best way to teach your child financial responsibility. There are many reasons why regular payments to a child should be made or should not be made - in the end; I believe there is no right answer; it is up to each family to decide which method is best for them. In the many years of working with parents and teachers, these are the top seven reasons I often hear why children should receive grants.
1. They learn wisdom by spending money. It may be helpful to teach them how to prioritize spending and learn from an early age what the costs are.
2. They learn to save money. Having a standard amount of money can make it easier for them to practice good savings habits. A certain percentage of each payment can be deposited into a savings/pig bank account. Without a grant, any money they receive can be spent, with nothing left to save.
3. They learn to donate their money. A certain percentage of their income may be donated to charities, hoping to encourage your child to consider others and not be greedy for their own money.
4. They will learn to budget their money, so it stays in the middle of paying. In the end, most children will learn to be careful about spending their limited resources so that they do not run out of money. This will only happen if the parent did not agree to the first complaint about the extra money when the first mistake was made!
5. They can learn to make mistakes for less money. Children will learn to manage their money by committing themselves more quickly to being allowed to make mistakes themselves (and suffer the consequences), rather than being told how to manage their money by someone else. Parents need to instruct their children on how to spend their money, but not to enforce it (unless there are serious consequences for their mistakes).
6. They can stop crying for money. The idea is if they get a fair amount of money and they have a good understanding of how to budget, they won't run out of money, so they won't always bother you much. In fact, it is unlikely that it will eliminate money laundering, but it will have to slow down.
7. You can end up spending less. If you sit down and combine the money you give your child during the week with how much you spend on the things you buy (e.g., clothing), it can actually work cheaper to give it a share and make them deal with most of their purchases.
Finally, depending on how much guidance the child receives from their parents/guardians financially - whether it is a grant or not. As I said earlier, a grant is not the best option for all families, but these are some reasons why many parents and educators believe that a grant is the only way to go. Some families may not have enough space in the family budget to provide their children with regular payments, or they may not believe in it for personal reasons. Whichever way you choose, I have seen with my own eyes children from each side of the phone who have grown up to be different financial managers, just as children who seem to have no plan at all.
You must be logged in to post a comment.