How to Set an Allowance for Children

Children are ready to learn how to handle an allowance usually by the age of five. It’s a good idea to link allowance payments with the performance of simple household tasks. Here are some ways to decide on allowances for kids.

Difficulty: Moderately Easy

Instructions

1. Start your child’s allowance with a weekly amount that you can afford and can increase by a pre-determined amount each year on your child’s birthday. If you start with a dollar a week at age five and increase by a dollar a year, by 17 your child’s allowance will be up to thirteen dollars a week.

2. Start with a dollar allowance at age five and increase by fifty cents yearly, if you don’t want the amount to grow too high. This plan will equal four dollars weekly at age 11 and seven dollars weekly at age 17.

3. Decide what kind of tasks you want to link with weekly allowance payments. Make the tasks very simple to start with, like having the child make their bed and straighten their room every morning. If you have problems keeping track of tasks during the week, consider using a daily allowance payment basis.

4. Explain to your child that allowance can be withheld for not doing chores or for particular behaviors such as lying or missing curfews. Make the rules clear ahead of time so it doesn’t seem like you are making up rules as you go along.

Tips & Warnings

• A larger allowance may work better as a motivational tool for your child to do required tasks and avoid negative behaviors.
• Larger allowances give your child more autonomy at an earlier age by letting them buy some of their own clothes, hobbies and toys.