WHY AN ALLOWANCE IS IMPORTANT

An ALLOWANCE, a fixed amount of money given to you every month, helps you to learn money management skills.

An allowance is like an "income" that that an adult gets, except that you don't have to go out to work to earn it. You should be mindful, however, that you're getting the money because you're part of the family, so you should fulfill your responsibilities around the home -- chores, studies, etc. Getting an allowance allows you to take your first step towards managing your money like an adult.

Why limit yourself to an allowance?

Now, you're thinking... but but but my parents now give me money whenever I need it. Wouldn't it be stupid of me to change this?

Think about it. There are benefits for you as well. If you get an allowance, you get to be more independent, and have more control over how and when you spend or save your money. Even more important, when you have a steady "income", you will start learning important lessons, including:

• how to be responsible about money.
• how to save for what you want.
• how to make decisions on what to spend on.
• how to get the most value from your money
• how to make your money grow, etc.
  

You will probably make some mistakes, regret some of your decisions or choices, but you will learn from them.

Discussing it with your parents

If you do not yet have an allowance, you may want to discuss the subject with your parents. You'll probably want to discuss the following:

• why an allowance is important.
  
• the amount to be given to you weekly (or monthly).
• what you have to pay for out of that allowance.
• what your parents will still pay for.

When discussing with your parents, do keep in mind that you should respect their thoughts on how much you should get, what the money can be spent for, and what it can't be spent for.