Getting an allowance for doing chores around the house it a great way to earn some allowance and an excellent opportunity to show you can be responsible with your money. Here are tips to help you better use your allowance:
Understand the value of a dollar – If you knew that a bag of candy took your three hours of chores to earn, would you still buy it? Understanding the value of your hard work can help you spend your money more wisely.
Create categories for your money – Once you understand the value of your hard work you might want to create categories for your money, or a budget. Creating a budget for your allowance lets you to see where your money is going and helps you decide how much to save, spend and donate.
Find something to save for – Picking something to save for will give you control on how you spend your money. Not sure what to save for? Think of something you want that costs more than one week of your allowance. Concert tickets or something big like a bike are good things to save for.
Plan for the future – Think about what you want to do into the future. Do you have plans to do something fun with your friends? Thinking of how you spend your money in the future will help you become responsible with your money today.
Talk with your parents about how you want to use your allowance responsibly. They will have more ideas for how you can better use your allowance.