How to Give Your Teen an Allowance

Teen allowances are complicated by part-time jobs, homework and after-school activities. Find the right balance for your teen.

Difficulty: Moderate

Instructions

Things You'll Need:

• Personal Organizers
• Bank Account
• Bulletin Boards

1. Look at your teen's expenses. Some parents require their teens to pay for school lunches, clothing, car expenses, a college fund, school supplies and entertainment. Decide which expenses you want or need your teen to be responsible for. Add up the weekly total.

2. Clarify which expenses you will pay for and those that are the teen's responsibility.

3. Evaluate the allowance you currently give your teen. Is it too much? Does your teen work too hard for the money? Does your teen currently not receive an allowance?

4. Choose an amount for the allowance, taking into account the teen's expenses, job income and required chores.

5. Examine your teen's schedule. How much free time does he or she have? What chores around the house could be accomplished in the time available?

6. Discuss the allowance with your teen. Set up a schedule of chores and specify the amount of money.

7. Help your teen understand the importance of saving money. Set up a bank account for your teen. Many banks offer free savings accounts for children under the age of 18.

Tips & Warnings

• Monitor your teen's spending and saving habits. If you feel your teen has too much extra money and you have concerns that he or she might use it for activities or products you disapprove of, you may wish to lower the allowance.

on 2/28/2006 If you're very rich, try to refrain from giving your children zealous amounts of money to blow.

on 11/22/2005 It's really important to have a job. There is nothing like taking that first paycheck and buying something with your own hard-earned money. You learn leadership and responsibility.

on 11/22/2005 My parents don't give me a basic allowance. Instead, they make me run an errand (like going to the corner store for soda). The pay may be low, but over time, all that change from those $5 bills will pay for the movie that they've been pestering you about. However, if you have temporary money troubles, ask for all of the change back.