Dear Dave,
My wife and I try hard to get out of debt and get our funds under control. We have at all times given our kids an allowance, but we’ve been eager about stopping their allowance until we’ve paid off our debt and are in a greater financial position. What do you’re thinking that of this concept?
Cody
Dear Cody,
I’m glad you are each making smart changes in your lives, but I would not stop with what you have been doing to date on the subject of your kids. It is usually a series of great teaching moments for them. I would not call it more pocket money, though. In my opinion, there is a victim mentality attached to the word “pocket money” and that is not something you must ingrain of their minds.
Children should learn from a young age that cash comes with work. Even a toddler in kindergarten is sufficiently old to do some age-appropriate chores across the house. So let’s call it “commission” as an alternative of pocket money. Why? Because in these situations, it should not be seen as “treating” them. It must be seen – by you and by them – as a worthwhile achievement.
My wife and I did exactly that with our kids after they were growing up. Each of them had an inventory of chores that were expected of them every day. If they accomplished their chores, they got paid at the top of the week. If they didn’t, they got no money.
Some people consider this method as “tough love.” But it is not. It’s just love. It’s what you do while you’re trying to boost your kids and guide them to be independent, responsible adults.
— Dave
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Dear Dave,
I used to be wondering if you happen to recommend planning for future purchases, especially larger purchases, into your monthly budget? If so, how far upfront do you have to do that?
To the
Dear Andie,
If you wait until something goes fallacious or breaks, you are stuck in a large number and the victim of your personal poor planning. That’s why I’ve began putting money aside in my budget as soon as I see signs that I’d need the item in query.
Let’s say you are pretty sure you will need a more recent automobile in just a few years. Start putting money aside now. Decide on an inexpensive, inexpensive price, then work out how much you will need to avoid wasting every month to pay for it. And if you happen to can do it faster than two years? Great!
And remember: these items are much easier while you do not have to fret about things like automobile loans or bank card payments!
— Dave
