Many children first learn the value of money by receiving an allowance, The purpose is to let children learn from experience at an age when financial mistakes are not very costly, The amount of money that parents give to their children to spend as they wish differs, from family to family.
Many
children
first
learn
the
value
of
money
by
receiving
an
allowance
,
The
purpose
is
to
let
children
learn
from
experience
at
an
age
when
financial
mistakes
are
not
very
costly
,
The
amount
of
money
that
parents
give
to
their
children
to
spend
as
they
wish
differs
,
from
family
to
family
.
At first, young children may spend all of their allowance in no time, Lf they do this, they will learn the hard way that spending must be done within a budget, which demands choices between spending and saving, Older children may be responsible enough to save money for larger costs, like clothing or electronics.
At
first
,
young
children
may
spend
all
of
their
allowance
in
no
time
,
Lf
they
do
this
,
they
will
learn
the
hard
way
that
spending
must
be
done
within
a
budget
,
which
demands
choices
between
spending
and
saving
,
Older
children
may
be
responsible
enough
to
save
money
for
larger
costs
,
like
clothing
or
electronics
.
But it is not a good idea to pay your child for work around the home, These jobs are a normal part of family life, Paying children to do extra work around the house, however, can be useful.
But
it
is
not
a
good
idea
to
pay
your
child
for
work
around
the
home
,
These
jobs
are
a
normal
part
of
family
life
,
Paying
children
to
do
extra
work
around
the
house
,
however
,
can
be
useful
.
It can even provide an understanding of how a business works.
It
can
even
provide
an
understanding
of
how
a
business
works
.
Allowances give children a chance to experience the things they can do with money.
Allowances
give
children
a
chance
to
experience
the
things
they
can
do
with
money
.
They can share it in the form of gifts or giving to a good cause.
They
can
share
it
in
the
form
of
gifts
or
giving
to
a
good
cause
.
They can spend it by buying things they want., Or they can save and maybe even invest it, Saving helps children understand that costly goals require sacrifice; you have to cut costs and plan for the future.
They
can
spend
it
by
buying
things
they
want.
,
Or
they
can
save
and
maybe
even
invest
it
,
Saving
helps
children
understand
that
costly
goals
require
sacrifice
;
you
have
to
cut
costs
and
plan
for
the
future
.
Many banks offer services to help children and teenagers, lean about personal finance.
Many
banks
offer
services
to
help
children
and
teenagers
,
lean
about
personal
finance
.
A savings account is an excellent way to lean about the power of compound interest.
A
savings
account
is
an
excellent
way
to
lean
about
the
power
of
compound
interest
.
Compounding works by paying interest on interest.
Compounding
works
by
paying
interest
on
interest
.
So, for example, one dollar invested at two percent interest for two years will earn two cents in the first year.
So
,
for
example
,
one
dollar
invested
at
two
percent
interest
for
two
years
will
earn
two
cents
in
the
first
year
.
The second year, the money will earn to percent of one dollar and two cents,, and so on, That may not seem like a lot.
The
second
year
,
the
money
will
earn
to
percent
of
one
dollar
and
two
cents
,
,
and
so
on
,
That
may
not
seem
like
a
lot
.
But over time is adds, up.
But
over
time
is
adds
,
up
.
Many children first learn the value of money by receiving an allowance, The purpose is to let children learn from experience at an age when financial mistakes are not very costly, The amount of money that parents give to their children to spend as they wish differs, from family to family.  At first, young children may spend all of their allowance in no time, Lf they do this, they will learn the hard way that spending must be done within a budget, which demands choices between spending and saving, Older children may be responsible enough to save money for larger costs, like clothing or electronics.  But it is not a good idea to pay your child for work around the home, These jobs are a normal part of family life, Paying children to do extra work around the house, however, can be useful. It can even provide an understanding of how a business works.  Allowances give children a chance to experience the things they can do with money. They can share it in the form of gifts or giving to a good cause. They can spend it by buying things they want., Or they can save and maybe even invest it, Saving helps children understand that costly goals require sacrifice; you have to cut costs and plan for the future.  Many banks offer services to help children and teenagers, lean about personal finance. A savings account is an excellent way to lean about the power of compound interest.  Compounding works by paying interest on interest. So, for example, one dollar invested at two percent interest for two years will earn two cents in the first year. The second year, the money will earn to percent of one dollar and two cents,, and so on, That may not seem like a lot. But over time is adds, up.