start

When should you start giving an allowance to your kids?

I'm never ask the expert is it Adam it

is a debate most parents are gonna have

do you give an allowance at what age how

much what do they need to do to get it a

local financial professional Nick folks

from wealth Wisconsin com joining us

this afternoon I remember I got a buck a

day over the summer for doing odd jobs

around the house and you know seven

bucks a week when you're 10 11 years old

you know that'll get you pretty far yeah

that adds up to be a lot of money a lot

of people have different debates about

how do you get an allowance so really my

personal opinion I think it allowance is

a good thing it can teach kids to really

think about how are they gonna manage

some of that money it teaches financial

responsibility but one of the main

things I look at is are we tying that

allowance to any type of work we all

know you don't get something for nothing

so if we can think about you know

providing a way for our kids to earn an

allowance it's different than just

giving them allowance does that make

sense yeah and how much though I mean

because you have to decide on an amount

yeah and that's always gonna be a

negotiable with a kid isn't it

so we really have to choose okay how

much we want to give our kids well for

some people they say well depending on

the age of the child I'll give a dollar

for the age that the child is but I go

home my goodness when all the sudden

fifteen bucks a week you got to start

adding that in that's taken away from

retirement accounts or your weekly

coffee but that could be effective but

the important thing is just making sure

that you really think through on your

own personal budget how much can you

handle to give to your kids and then I

went into an allowance and of course

they're gonna want to negotiate it hear

them out see why they why they think

they deserve a little bit more I know in

our house we have a little chore

responsibilities list kids as they

complete their chores they have ability

to earn more and more in their their

allowance if they don't complete things

they lose a little how young is too

young to start with the allowance when

do the kids really start to need a

little bit of spending money well I

think you should really maybe think

about it once I can count the money if

they can't count the money yet and they

really tell me why don't the money is

not a good thing yeah quarters are back

up the system so we think you know if

you can wait until they can count the

money for example my little girl she was

holding on two dollars we went to the

store she wanted

a little toy and I said okay well that's

gonna take four of the five dollars you

have and once I took the actual money

away she started counting she was like

that's a lot less than I had and I said

yeah she ain't with the toy anymore

so once I can really kind of understand

the value of the dollars or lessen what

do we do to teach our kids about money

before they're actually ready for an

allowance is there anything that you do

or do you tie it all in to the actual

money well I don't tie it all into the

money there's different principles of

money that we can teach them about

teaching them about giving for example

there was one gentleman I was talking to

you he actually has a piggy bank similar

to this that he has three different

holes in it for one is forgiving so that

every time he gives three dollars to his

kids one dollar goes to giving one

dollar goes to saving and one dollar

goes to spending money but a lot of

times just teaching them what are my

needs versus my wants you need food you

want a toy there's a big difference

between those things all right got a

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thank you sir