Giving juveniles and youngsters allowance is increasingly popular all over the world. Although this trend breeds a problematic issue, I believe that this is quite negligible compared to the benefits of financial advancement.
Concerning the challenge, there is a worrying aspect of this practice. Giving some amount of money to youngsters can sometimes urge them to spend their money on unnecessary things. Take game clubs, as an example. The reason for this is that many boys and girls don’t value the money of other people including, their parents because youngsters do not work and earn salary. As a consequence, a child who is accustomed to receiving consistent financial rewards on an unqualified basis cannot manage to allocate money on useful things. But if they do not get obsessed with wasting, they might have a higher tendency to invest their money in good things.
However, the above drawback is outweighed by the benefits including enhancement of the skills of making decisions because of experiencing the consequences of choices such as,buying studying tools or even the food they have for lunch. Eventually, they will know how to buy things at a good price and will know the ways of not going bankruptcy in the long term when they run a business. In contrast, if children are illiterate about finance, they will not know about making more money and conducting a business without any financial burden , which end up in a little income and bankruptcy.
Furthermore, besides an enhancement of decision-making skills, providing a child with allowance can be a core factor to breed some better money habits.The reason for this is that It offers practical, hands-on experiences with money management.For instance, saving money for more necessary purposes and donating some portion to charities create an opportunity for juveniles to learn to prioritize needs over wants and set financial goals and help disabled patients gain better health and funding for the medical service.
In conclusion, giving children allowance has brought the disadvantage of squandering finances;however, the advantages such as, fostering decision-making skills and implementation of useful and practical money habits can undoubtedly eclipse the disadvantage aforementioned above.