Top 20+ Reasons to Pay your Kid an Allowance

1. They can make mistakes under your guidance

2. They will learn how to save for the future

3. They will learn that money doesn't "grow on trees"

4. They will appreciate what they have

5. They will learn to make choices and set priorities

6. They'll stop nagging you for money

7. There will be less friction in your household

8. They will learn healthy financial behaviors

9. They will learn your values

10. You can teach them that it isn't all "about the money"

11. They will learn how to spend wisely

12. They will be prepared to enter the grown-up world.

13. Allowances will teach your children to be resourceful, independent and unique.

14. An allowance is a "tool to empower your children to avoid commercialism's clutches."

15. You can teach them to avoid the pitfalls of debt

16. You can help them improve their communication skills around money.

17. An allowance now could help them avoid future "marital money chaos"

18. They'll learn the difference between quantity and quality.

19. They'll learn how it feels to make a poor choice and have to live with it.

20. They'll learn how to resist impulses (sometimes, maybe!)

21. They'll learn to appreciate and take care of their things

For help in designing an Allowance system that works for your family, please contact Cindy at 541-387-2995 or by e-mail.

(c) Phelps Creek Financial Coaching - All Rights Reserved

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About Cindy Morus

Cindy S. Morus (http://www.phelps-creek.com) is a Certified Financial Recovery Counselor specializing in showing women and their families how to achieve financial well-being and peace of mind. She is also a Certified Credit Report Reviewer and Get Clients NOW!â„¢ licensee. Contact her at 541-387-2995 or cmorus@phelps-creek.com. She is also the publisher and editor of "Financial Fitness", an internet gazette dedicated to helping people improve their financial fitness no matter what decisions were made in the past.

Attention Ezine editors/Site owners: Feel free to reprint this article in its entirety in your ezine or website as long as you leave all links in place, do not alter the content and include our resource box as listed above. If you do use the material please send us a note (cmorus@phelps-creek.com) so we can take a look. Thanks


And here is another random article you might be interested in...

Is Your Bank Overcharging You For Your Overdraft?

Unauthorised overdraft fees. These are three words that worry every bank customer. An unauthorised overdraft fee is the fee charged by a bank when customers go over their overdraft limit.

These fees can be very steep, with some banks charging high premiums for customers who exceed an agreed overdraft limit by as little as a few pence. A recent consumer report suggests that bank customers paid more than £4 billion pounds in unauthorised overdraft fees in 2004.

Scale Of Overdraft Fees

The BBC have reported that the seven major banks charge unauthorised overdraft fees of £25 to £38 pounds. Interest rates on the unauthorised amount can also be high. While some banks charge under 8% interest, others have interest rates that hover around the 30% level.

The banking industry has been slated for this practice by customers who feel they have been treated unfairly. The Office For Fair Trading has also criticised banks for overcharging customers for unauthorised overdrafts. Late payment fees for credit cards have also been criticised. The OFT suggests that late payment fees for credit cards should be no more than £12 and should only cover the administration fee.

Getting A Refund

Consumers who feel they have been overcharged by their banks may be able to receive a refund if they go through a time consuming process.

First of all, consumers can use the Data Protection Act to request details of all charges on their account over the past six years. Next, they need to inform the bank that they intend to sue in County Court to get this money refunded.

Are Unauthorised Overdraft Fees Legal?

There is some question as to the legality of unauthorised overdraft charges. Penalty clauses (such as unauthorised overdraft charges) are illegal under breach of contract law. However, banks do have the right to claim damages from customers who breach their contract with the bank. To avoid going to court every time, most banks write these charges into the contract. They are then able to raise those charges at regular intervals.

The banks see the unauthorised overdraft fee as a fee for services rather than a penalty. This could alter the legal position.

In many cases, it is the people who can least afford it who suffer these overdraft charges. This can become a cycle, with some people having to pay unauthorised overdraft fees month after month.

Help With Your Banking Rights

Consumers who want to find out more about their banking rights should check information from the Bank Action Group, a self-help organisation for banking customers. This organisation can guide consumers through the lengthy process of recovering unauthorised overdraft fees from their bank.

Many organisations say that the banks should make it easier for consumers to see what charges might be applied to their bank accounts. Until they do, consumers should read the fine print as the terms and conditions of each bank account contain information about charge that might apply. Finally, when banks send variations of terms, it is useful to read these to see what new conditions might apply.

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About Joseph Kenny

Joseph Kenny writes for the Loans Store which offers more information on home loans, secured loans and other loan topics available on site. Visit Today: http://www.ukpersonalloanstore.co.uk