How much should you pay your child for chores?
Compare it to your allowance as a kid.
How much you give your child is up to you and depends on many things, with one of the most important factors being what you expect your child to buy with that money. If you already buy your child everything he wants, then he doesn't need much of an allowance. If he is going to be expected to buy his own clothes and pay all of his entertainment expenses, then he may need more.
If $1/year each week sounds like too much, then consider just giving 50cents/year each week or maybe just once a month.
Also remember that some portion of your child's allowance should go into a savings account to help your child learn about the importance of saving money.
- Vincent Iannelli, M.D
Republican Sen. Wayne Allard of Colorado, explains that "financial literacy should start early," as early as elementary school. "Many college students or recent grads," adds Allard, "face tremendous financial hardships, whether it is pertaining to college loans or mismanagement of credit and money." They need to know how to balance income, spending, putting money away and making savvy decisions.
To get on the right track, your youngsters can learn how to earn money through PAYjr's online system (www.PAYjr.com) - and once they have some cash they can learn to save and/or invest it to make sure they are ahead of the game and learning smart financial habits that they will take with them as they grow.
If they are looking to invest they can check out "www.younginvestor.com, a site that explains things like how to be a profitable baby sitter and what Nasdaq is. Several word and number (and a few arcade) games help familiarize kids with financial terminology and monetary concepts.
Should your children show an interest in actually investing, a good venue for trading for kids is www.sharebuilder.com, where you can buy stocks and ETFs a little at a time, starting with an investment of as little as $4." - (Barron's Kathy Yakal) "there's also no investment or account minimum, or inactivity fee. In addition, ShareBuilder lets you buy fractional shares. If you invested, say, $200 for each child in a stock trading at $16 a share, each of them would own 12 1/4 shares (less the $4 commission)." - Janet Bodnar
Or they can try their investing skills in the online Fantasy Stock Market Game Where kids and teens can learn stock market investing basics at youngmoney.com
Either way they go, they should be learning about money so that they are prepared for the real world, paychecks, student loans, credit, mortgages, etc. Let them get in the game now and see how that can brighten their financial future.
Need more answers? Ask our CEO a question!visit our CEO's blog at http://choresandallowances.blogspot.com/
Budgeting - Quick Tips for Long-Term Benefitsby David S. Jones
1. Budgeting is such an important and helpful aspect of becoming financially responsible. And not only for adults, but its something kids need to learn about too. Pull out a checkbook and show them the concept of deposits versus expenditures to give them a visual understanding and lesson about living "within our means".
2. A home-made budget spreadsheet can be a huge help to you. Having a visual tool offers an easily accessible method of comparison and tracking of your allotted finances versus actual spending habits. You can also then determine where you need to make adjustments, as necessary and if applicable.
3. If you're one of the many individuals struggling to keep to a budget no matter how hard you try each month, consider contacting a financial consultant. It doesn't have to turn into a long-term relationship - usually one consultation can give you the tools you need to determine a workable budget that you can easily stick to.
4. Although many people don't utilize the technique, a little time and effort taken to establish and keep to a budget will reap great benefits for you in the long run. Simply sit down and determine your net income minus monthly expenditures and only spend and live within those limits.
5. If you're falling deeper and deeper into debt, get in touch with a credit repair company. They will assist you by working with the lenders to lower your interest rates and even balances in some instances. They'll also set you up with a workable budget to help eliminate that stress of being in debt.
Money doesn't have to be kept a secret - the more kids understand about budgeting, saving, spending and investing the more they will be able to tackle those issues as emerging adults.
For more information on budgeting ideas for the whole family, visit www.payjr.com. The pages are full of insightful and helpful tips and processes that will make these topics come to life for both you and the kids.
PAYjr strongly encourages parents to educate themselves and their children on the responsible use of the Internet and asks them to monitor all their children's online activities. PAYjr, Inc.'s goal is to minimize that risk as much as possible and protect our users by continually upgrading our systems and policies. Please feel free to email us at support@PAYjr.com if you require any further information.