Financial Wellness Minute: Allowance (Kids & Money)

Get smarter about your money with this Financial Wellness Minute. I'm Patrick Voigt, office manager at Mid Minnesota Federal Credit Union in Detroit Lakes. As a kid, it's hard to learn and develop spending and saving habits without actually having some money to save and spend. A weekly allowance is a good tool to show them that cash is not limitless. As a parent, you need to determine how much the allowance should be. That will be based on the child's age and what types of purchases you intend them to pay for (toys, movies, and gas, just to name a few).  Kids tend to think long and hard before parting with their own money, instead of yours. So, what happens when your child wants the newest phone on a $15 a week allowance? This is where the lesson of delayed gratification comes in. Things really mean more when you have to wait for them.  There are options too. Maybe agree to match what they saved or give extra cash for extra work completed. Be prepared for discussion regarding changing the allowance amount.  Ask why they feel a change is needed or wanted. By doing this, you are teaching your children real life skills that will help them later when they need to negotiate other life situations. Bottom line, we are developing money habits and kids who appreciate what they have. Want to know more about allowances or have a weekly financial wellness tip sent to you? Sign up below or, contact your local Mid Minnesota Federal Credit Union Office. Sign Up for a Weekly Financial Wellness Tip Mid Minnesota Federal Credit Union is federally insured by the NCUA and we are an equal housing lender.