How to Give Your Kids Allowance: What NOT To Do!

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By argyle
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Pocket Change

There are lots of ways to handle giving your kids an allowance and teaching them about responsibility and finance. Here's a list of things NOT to do.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

Kid(s)
Money

Step 1

Do Not Tie Money To Chores!

Most parents tie allowance to chores at home. You do chores, but you aren't paid for them. This gives a conflicting message. Chores are a family responsibility, that everyone does for the family and not for a payment or reward. Kids need to be taught that or else they will grow up expecting a "reward" for normal behavior. Kids should receive an allowance for doing the job "Being a Kid." It's not a reward, it's a teaching tool so they will be ready for income later in life.
Step 2

Do Not Withold Money For Misbehavior!

Witholding money as punishment is not the way to go. It teaches your children that it's OK to act out if they can afford it. Imagine this: your kid gets $50 from grandma, which is a month's worth of allowance. He can act out all he wants beause he can afford to! Acting out should be punishable, but it should be exclusive from the money. This is very difficult for parents to do, especially with children who spend rather than save because it is a obvious bargining chip.
Step 3

Do Not Take Control Of The Money!

Many parents give their kids money, but won't let them spend it. You need to let your child make their own financial mistakes and learn from them. What if they lose the money, or spend it instead of saving up for what they really want? Well you can be sure that won't happen again! Kids learn by doing, and you should let them even if it means they will be upset for a little while. They need to learn to be responsible for their own actions, and not "but mommy let me do it, it's her fault!"
Step 4

Don't Take It Too Slow!

The younger a child is, the slower time seems to move for them. For an 8 year old, waiting a week is like an eternity! If you space things out too much, you child will lose interest. A weekly allowance should do the trick and any longer than that is like torture. Be sure to pay your kids at the same time on the same day so it is predictible. It will teach them to expect and depend on that consistency (just like with a paycheck!).
Step 5

Don't Wait Too Long To Start!

When is the right time to start giving your child allowance? Answer: As soon as the kids are able to say "mommmy I want that" they are ready to get an allowance. Start with a small amount, and increase it as appropriate. A young child can learn pretty much as soon as he can count: Two quarters = Two gum balls. If he buys too many he won't be able to get any more next time!

Comments

coffeefirst said

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on 4/20/2009 An allowance is a great way to learn about money, however, I think if you just hand it to them on a regular basis, they will come to expect it and think they don't have to work to get paid.

naturalremedy said

on 3/11/2009 I enjoyed this article. I really like the part that says they should get an allowance as soon as they can say I want this! So true! Good way for kids to learn about money.

scrapbookcircus said

on 2/19/2009 Fantastic article...thank you! I think you've inspired me. Since this is a year characterized by outrageous bailouts and fiscal lunacy everywhere I look, I'm thinking that it might be a good idea if more of us started following advice like this!