Raiding the Piggy Bank
September 28, 2016
46% of parents of children aged between4 and 16 years old said they have taken money from their child’s savings, according to a survey by Nationwide Building Society. That is nearly half of all parents admitting to dipping into their children’s piggy banks to help cover items they classified as household bills. Moms were found more likely than dads to raid the piggy bank, however dads were found to take larger amounts each time.
So, the question is, why are they doing this? Chances are, they are not saving enough for themselves and their expenses are too high. If the child has money, they are most likely receiving it from an allowance. Giving an allowance can be a great opportunity for teaching important financial lessons for your children, but if you then steal that money back – the lesson is lost
Many parents often wonder what they should do when it comes to giving an allowance. Explain to your child that money is earned by working and that you can only spend what you earn. You can start an allowance at an early age. As soon as your kids start talking about money, you can use the time to teach them valuable lessons. Once you decide to give your kids an allowance, you want to be consistent with the amount and frequency. I find most parents have success starting with one dollar for each year the child has been alive. So, if you have an 8 year old, do $8 a week or $8 a month. The most important thing to remember is that if you decide to give your child an allowance, you need to make sure that amount fits your budget and you are straining each week or month to do it.
We encourage you to bring your children along with you when you come in to meet us. In addition, we will soon be offering a hands on workshop for children and their parents, keep watching our newsletter and website for upcoming dates!