Today my two-year-old turned to me and asked for money. He knows what it is–the green paper and the coins that he wants to carry around. I am sure that he does not quite know what to do with the money yet. He did learn recently that if you put it in a machine that candy comes out, but other than that he really does not have the concept down yet.
One reason that he is so aware of money is that he wants to do everything that big sister does. She has an allowance, chores, and the desire to spend, spend, spend–something that we are trying to curb. She is being taught that she must earn the money by doing her chores. Then she must give ten percent to charity, save some (we let her choose how much) and then she can spend the rest.
She is actually beginning to grasp that most things she wants are not covered by a month’s allowance. She is only five, so we feel that five dollars should adequately cover what she wants to buy. Plus we want her to learn the value of saving up for a purchase. She is learning that as well.
We will likely start giving our son an allowance when he is three. Right now all he wants when he goes to the store are balls and chocolate. We have plenty of balls and I like chocolate too, so his needs are covered as well. I know, as the kids grow older that their needs will increase but so will their responsibilities in helping around the house.
For many an allowance at three or even five may seem young, but I believe the younger you start them the better they will learn. It is easier to begin to teach your children financial discipline when they are young, than when they are teenagers. It also opens the door to allow them to earn the toys and other things that they want.
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