Mum Money Hacks 101: Creating An Allowance System For Your Kids

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tips and tricks, money matters, money talks, parenting tips, budget and saving tips, budget saving tips for families
Jordan Rowland

The new school year is in full swing, and if you’re like most Pinoy mums, you probably just finished getting all of your kids’ school supplies, uniforms, and have finally chosen the best tuition fee payment plan to fit your budget. But one thing that you may have to sort out is your child’s allowance.

Indeed, one of the questions that come up these days in parents’ minds is how much baon should you give your kids. If they’ve started asking for some money to spend at the school canteen, here’s what you need to know to create an effective allowance system for your children.

When to start giving baon

Last year, your child may have been content bringing some snacks and a packed lunch to school. But if he or she suddenly asks for an allowance this time around, it may be because your child has seen a classmate paying for food at the canteen. At around the age of 6, kids become more aware of the concept of money and purchasing. It’s essential that they have a good grasp of the basics so when they grow up, they can make good choices when making important financial decisions, such as dealing with credit card debt. Thus, starting them early with an allowance would be good practice for the future.

How will you know if your child is ready to receive an allowance?

If your child can do simple addition and subtraction or mental math, you can give enough money to buy a snack or a sandwich for recess. Check out the school canteen to know the types of food and the corresponding prices, which will help you determine how much baon to give your child.

tips and tricks, money matters, money talks, parenting tips, budget and saving tips, budget saving tips for families

Continue packing your child’s lunch

Elementary and high school kids usually have two breaks ~ one for recess in the morning, and a lunch break at noon. If your children are in elementary school, you can start by giving them enough money for recess, but they still have to bring and eat their packed lunch from home. For older children, they may want to have enough money for both breaks. Check how much a typical lunch costs at the canteen to determine how much money to give your older child.

Let your kids bring their own drinks

Buying drinks day after day can be costly, so let your child ~ regardless of age ~ bring his or her own drinks to school. A BPA-free, freezer-safe refillable water bottle will come in handy for bringing chilled water or fruit juice to school. If your child plays sports or if its P.E. day, a one-gallon water jug filled with chilled or flavored water can keep your little one hydrated.

Have the right denomination on hand

If you’ve decided on a set amount to give your child on a daily basis, it helps to have the right denomination on hand. For instance, let’s say you and your child agreed on a daily allowance of Php50. Make sure to have enough 50-peso bills so you can give your child the exact amount. Exchange your larger bills at the bank on Friday or ask your partner to break your hundreds into fifties. Having an allowance teaches children about responsibility, and the amount to give your child depends entirely on you.

There’s no right amount when it comes to an allowance, but make sure that it’s enough to cover your child’s food cost. Follow these tips to create an allowance system to ensure that your children have the right amount of money on hand while keeping your household budget in great shape.

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