"Allowing" a fiscally frugal future

Olivia LeganFeature EditorAn old proverb reads, “the art is not in making money, but in keeping it.” Some have mastered the art of budgeting, stashing their savings away for college or a new bike. Others are not as thrifty and run to the nearest mall the second they get some green.What some people may not know, however, is that experts believe that getting an allowance as a child or teen can significantly aid a child in developing positive financial skills in order to prosper later in life. According to “Dollars & Sense for Kids,” written by Senior Editor of Kiplinger’s personal finance magazine in Washington, D.C. Janet Bodnar, “Because most children will get the money out of parents anyway, it’s better to teach them how to manage it themselves than allow them to nickel and dime you to death.”For younger children, allowances can be minimal; their purchases don’t extend much further than candy and toys. When I was 11, I would get paid a couple of dollars to take out the trash and feed the cat. The rate and frequency of my allowance was inconsistent, but it didn’t matter because my parents would generally give me money when I needed it. For teenagers, the degree of financial independence varies from family to family. Some parents handle all of their teenager’s finances. Others are expected to pay for his or her own clothing, movie tickets, food and even rent. For example, my friend doesn’t recieve an allowance, but her parents pick up the bills for her clothes, makeup, furniture, etc. Her parents never say no, and never fail to give her money whenever she needs it, no questions asked. On the other hand, I have a number of friends that recieve an allotted amount of money each month, to be rationed and used for the things a parent would otherwise be handling on a daily basis.As adolescents approach adulthood and full independence, learning how to be smart with one’s money is imperative. Teens whose parents hand them $20 dollars every time they go out do not learn crucial budgeting skills according to kidshealth.org. Instead, they spend it all on food or a new sweatshirt, knowing that the next time they go out, money will always find its way into their pockets.Unfortunately, this is not how the world works. People need to learn to manage their money, budget and prioritize. For this reason, financial experts are supporting allowances more and more.“The only way kids learn about money management is by their own successes and failures, and you have to have money to do this,” Financial Advisor David McCurrach said on his web page kidsmoney.org. A survey of parents from the site shows that about 60 percent give their kids an allowance.Sophomore Mehak Delawalla’s experiences illustrate this point.“I think it would change the way I feel about money because I would be more cautious to when I spend it. My parents give me money when I need it, but if I had an allowance it would be my own money so I would save.” Sophmore Mishayl Sayani agrees, saying that by not having an allowance, it takes away her ability to have money management skills.According to a New York Times article “An Allowance That’s Measured in Minutes, Not Cents”, many parents and experts say that money should not be a reward for chores. According to Aletha Solter, a developmental psychologist and founder of the Aware Parenting Institute, children who do chores regardless of financial gain will learn the value of cooperation by contributing to a family.According to Time Magazine, when it’s their own money being spent, teens are much more likely to be careful with their spending. While many teenagers are not ready to dive head first into the real world of job searches and pay checks, an allowance is an important first step into the world of financial responsibilityolegan@thesamohi.com