Many children first learn the value of money by receiving an allowance. The purp

Many children first learn the value of moneyby receiving an allowance. The purpose is to let children learn from experienceat an age when financial mistakes are not very costly.

The amount of money that parents give totheir children to spend as they wish differs from family to family. Timing isanother consideration. Some children get a weekly allowance. Others get amonthly allowance.

In any case, parents should make clear what,if anything, the child is expected to pay for with the money. At first, youngchildren may spend all of their allowance soon after they receive it. If theydo this, they will learn the hard way that spending must be done within a budget.Parents are usually advised not to offer more money until the next allowance.

The object is to show young people that abudget demands choices between spending and saving. Older children may beresponsible enough to save money for larger costs, like clothing orelectronics. Many people who have written on the subject of allowances say itis not a good idea to pay your child for work around the home. These jobs are anormal part of family life.

Paying children to do extra work around thehouse, however, can be useful. It can even provide an understanding of how abusiness works.

Allowances give children a chance toexperience the three things they can do with money. They can share it in theform of gifts or giving to a good cause. They can spend it by buying thingsthey want. Or they can save it.

Saving helps children understand that costlygoals require sacrifice: you have to cut costs and plan for the future.Requiring children to save part of their allowance can also open the door tofuture saving and investing. Many banks offer services to help children andteenagers learn about personal finance. A savings account is an excellent wayto learn about the power of compound interest.

Compounding works by paying interest oninterest. So, for example, one dollar invested at two percent interest for twoyears will earn two cents in the first year. The second year, the money willearn two percent of one dollar and two cents, and so on. That may not seem likea lot. But over time it adds up.

1.For children who receive allowances,they’d better not ________.

 A. waste money to buy gifts for theirparents or friends

 B. buy their favorite clothing orelectronics for themselves

 C. save money like their parents orother adults

 D. ask for the next allowance beforethe decided date.

2.Many parents give children an allowanceregularly to ______.

 A. meet children’s basic need forlife       

B. give control over their children

 C. see whether they have financialmistakes  

D. help children learn how to manage money

3.If children are required to save theirallowance, they ______.

 A. can experience three things relatedto money

 B. can understand the relation betweengoals and sacrifice

 C. will do more work around the house

 D. help themselves found the basis fortheir future life

4.What is the best title for the passage?

A. Be Generous to Pay Your Children

B. Be Wise to Avoid Financial Mistakes

C. Saving Allowances Does Good to Children

D. Allowances Help Children Learn aboutMoney

试题答案

【答案】

1.D

2.D

3.B

4.D