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Why Your Child’s Allowance Should be Tied to Their Chores

Posted On: September 13, 2017 by Bank of Blue Valley in: Personal Banking, Personal Finances

There are literally thousands of how-to’s and self-help books for parents, but truly the only real way to learn how to raise a child is to do it! Luckily our growing team of parents at Bank of Blue Valley have some true hands-on experience when it comes to upbringing and explaining money management to little ones. One of the most common fiscal questions parents have concerning their child’s financial education is, “How do I teach them about money using an allowance?” The simple answer is, however you want. There are a number of ways you can utilize a recurring allowance to help your children understand both the importance of good money management and a sound work ethic. Below are two of our favorite strategies:   Example #1: Earn Your Extras In this scenario, allowances are guaranteed to an extent. Every two weeks give your child a pre-determined amount of cash, say $5.00. That money then has to be split evenly between their educational savings and...