How to Give Kids an Allowance
Giving kids an allowance is an age-old dilemma, one that's debated in households all over the nation. Deciding how much to give, whether you should insist upon your child saving some of it, knowing whether allowance should be tied to chores or given freely are only some of the things parents have to consider. Making these decisions before you give your child an allowance can avoid disagreements down the line.
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Instructions
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How to Give Kids an Allowance
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Begin giving kids an allowance when, and only when, they begin to show an interest in money and money management. If the purpose of an allowance is to give your child the freedom to purchase what he wants, rather than learn how to manage his money in order to do so, it might be time to teach him how to budget his allowance.
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Decide what expenses your child will be responsible for once she has her own money. This can help you determine how much allowance to give. For example, if you expect your middle-school aged child to pay her own way at the movies when she goes with friends or pay for her lunches, then you'll need to provide her with more money. On the other hand, you'll also be cutting down on your out-of-pocket expenses if those are your expectations.
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Create a list of what you already pay for, what you feel you should be paying for and what your child's allowance needs to pay for. Go over that list with your child before beginning to give an allowance and make any necessary adjustments on a regular basis.
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Provide your child with a weekly or bi-weekly allowance, depending on how often you get paid. Letting your child know that his "payday" corresponds with yours can help drive home the idea that money has to be managed and made to last until the next payday.
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Choose an amount you can afford. There are many thoughts about how much to give for allowance. Some people think a dollar per year of age is appropriate, while others assign each chore a monetary amount. The bottom line is you need to be able to afford your child's allowance and she needs to be able to afford the items you've decided she's responsible for purchasing.
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Help your child manage his allowance, but don't micromanage it. Suggest that he might want to set aside a portion of it each time and give him the tools to know that he may need to save a while for something he really wants. However, an allowance is supposed to give your child a chance to learn how to manage his own money, which he won't be able to do if he doesn't make mistakes.
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Think carefully before tying an allowance to chores. Families rely on everybody pulling their weight around the house. Chores are a child's way of pulling her weight and should be expected. Tying allowance to chores gives your child the option of deciding she'd rather be poor than do her share of the work.
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Tips & Warnings
Avoid withholding allowance as a discipline measure, unless your child's infraction has something to do with owing you money. If, for example, he breaks something valuable or goes over on his text plan that month, instead of withholding the money have him help you create a repayment plan--that's what would happen in your life.
