With an allowance, children can learn to plan expenditures, allocate funds and set aside money for later use. Most children are ready for the responsibility of an allowance by the time they are six to eight. Earnings give children a sense of freedom and lead to financial responsibility. Children can begin earning money whenever they can handle the work involved delivering papers, babysitting, raking leaves. Employment helps them to understand the relationship between money, time, skills and effort.
Work also helps to develop self-esteem.
Although the gifts belong to the children, parents can discuss with them how the money should be used. If you plan to prepare large family meals or to entertain during the holidays, don t let seasonal hustle and bustle keep you from making wise food purchases. If you tack grocery shopping on to the end of an exhausting gift shopping trip, you may be tempted to rush through the supermarket as quickly as possible. Under these circumstances, you may buy food more impulsively, spending more money than you planned. Set aside time to plan for holiday food and entertaining.