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A Kids Allowance - Answers to Common Questions
A sensible allowance for your child will teach them valuable money skills. What is the purpose of an allowance and what's an acceptable amount for a children's allowance? Read on...
It seems that with the cost of living, along went up the cost of providing your kids with an allowance. In this sense, it is difficult to tell what is an acceptable amount for your kids' allowances and what might be too much. Read on for some answers to common questions about kids allowances and more information on how to decide how much they deserve.
Is an Allowance Payment for Chores?
The short answer is no. An allowance is money your child gets just for being your child. They are not being paid to do chores. However, if they want to earn extra money, paying your child for doing extra chores is a good idea.
There's a danger in paying your child for chores. As soon as the child realizes that either don't want the money, or they can earn more money doing something else, they'll stop doing chores. Chores should be something they are required to do just because they are a part of your family.
Should I Give an Allowance?
Yes, you should. All children need to understand the power of money and how to manage it well, and this education starts early in life. Some kids may not care too much about the money, some will, but the lesson is there - they need to learn the concept of money and it's uses.
The child may not want to buy anything right away, but the value of giving an allowance lets you explain the importance of saving some of their money, giving some away to charity or church, and keeping the rest for spending.
An Allowance Teaches the Benefits of Delayed Gratification
Having money also gives kids a sense of what things cost. Before long, they start to see prices in stores of toys they want and start to think about how much they have saved as compared to the price of the toy. This gives them a savings goal, and kids start to look forward to receiving their allowance each week and watching the money pile begin to grow.
Is My Child Too Young for an Allowance?
Commonly, as a child reaches school age, around 5 years old, they will begin to be able to understand what money is and it's purpose. Many kindergartners receive an allowance, as do many first and second through twelfth graders.
What Is the Right Allowance Amount?
Back in the 70's, I used to get about 50 cents a week as a kid under 10. But now, an allowance can be anywhere from a couple dollars for young children, to ten or twenty dollars a week for teenagers. Check out the this page describing the right allowance amount for kids.
Of course your income as a parent is central in determining how much to give your child, but you should account for your kids allowances in your monthly budget.
Give Your Kids an Incentive
The allowance amount shouldn't be so much that they have no need for more money. They shouldn't be able to buy all the latest clothes they want off their allowance for the week. Or the coolest new skateboard. Make the allowance amount enough so they have to save for at least a month for something they want. This gives them an incentive to earn money on their own.
Remember, the whole purpose is to teach them the value of money and good money management skills, so you need to create opportunities to earn more money.
Allowances Teach Money Management
Kids' allowances are about teaching your child valuable money management skills that they are going to need later on in life. It can teach them about priorities, saving, loans, budgeting, and so much more—without you ever having to lecture them.
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