At the same time, they can spend their money and keep a record of what was spent. This lesson provides an introduction to allowances for third through sixth graders.
Allowances are the first step to understanding written spending plans or budgets.
With guidance managing allowances in childhood, children can become financially responsible adults. Adults with effective budget skills create healthier family relationships and contribute to building a stronger economy. Teachers and parents can encourage children to keep track of the money that they spend for their needs and wants. Provide practice developing effective spending plans and following where money goes. Learn how to balance income and expenses.