Thursday, May 19, 2011

Kids and School Allowance

The school is soon to open and every parent who has school children will be busy attending to their kids’ school tuition, school supplies, books and school dresses. But these are not the only thing that parents must be prepared of when the school opens in June. The biggest expense aside from the tuition is of course the daily school allowance.
With the prices all going up, it is not impossible that your kids would ask for an increase in their allowance. Of course the initial reaction from parents will be, “no, there will be no increase”.  This will lead to unending whining and fights.

When your kid asks for an increase in allowance, try to negotiate instead of declaring it is the most remote thing to happen.  Sit down and talk and ask why he/she needs an increase. Try to understand what your kid wants the allowance for. After hearing his/her sides, try to talk of what other ways may be available than having an increase. Then clearly tell them your reasons why you might not be able to give in. Make no excuse but only the real reason such as high home mortgage, less take home pay and high interest in existing loan like cars, tuition and home repairs.

After finding that there’s really a need fro an increase, deciding how much to give, ask your kid for a written budget detailing expenses for the coming months. Take this into consideration and along side with your own budget, decide how much allowance is affordable. If ever your kid comes short of his/her allowance, sit down and discuss how and where the money is going. Try to talk him/her into spending the money wisely and give ways of how he/she can save. It is important to let your kid know and learn ways of “expanding the resource pie’ like getting a part time job during off school days.

When your kid knows that you understand his/her needs and you are trying hard to help him/her cope up with a meager allowance, she/he may voluntarily not ask for an increase but instead get other ways that may help him/her survives this hard -up times. It is parent’s duty to let children be part of budget-making and teaching them how to live within a budget temporary or for a long time will make them understand better about handling money in the future.

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