Top 6 Tips for Starting an Allowance
It is important to start teaching children about money as young as possible. It is equally as important to limit their personal experience until they are old enough to understand. Here are some tips for timing (and amounts) for giving your child an allowance and for determining if they receive the allowance each week.
1. If they can’t count money then they don’t need it.
2. Start at a single dollar and then increase each year on their birthday (we do it in $.50 increments).
3. Start all of your kids at the same age to avoid ‘the favorite’ remarks.
4. Make them work for their money (if mom and dad don’t get it for free then neither do the kids).
5. Keep the expected chores (feeding the pets, making the bed, etc) separate from allowance chores.
6. Take out for taxes and savings (if they learn now then they won’t be so shocked in the future).
Although every child will be different (as far as learning numbers and having an interest in money) most six year olds are ready for the responsibility. Take the time to explain to you child the privilege of an allowance and what is expected in return. Make them responsible for the little purchases (snacks at the ball field or tokens at the arcade) and they will soon learn the true value of small change.