Starting an Allowance
It’s never too early to start teaching your children about money. A great way to begin this is by giving them an allowance. There are several ways to do this, and I’ll talk about a few of them.
You can give allowance based on chores with specific money amounts. For example, you can decide to pay fifty cents for setting the dinner table, $1.00 for keeping their bedroom clean all week. You decide the chores you would like your child to do, and then show them how to do the work correctly. Let them know ahead of time how much they get for each job, and keep track. Decide how often they will receive the money they have earned.
Another option is to have a set amount of allowance based on their age. My children earn half their age in allowance. My five year old gets $2.50 a week. In order to earn their allowance, they have to keep their room clean, do an assigned job each day, and help out with other things that we might need. When they don’t do jobs or keep their room clean, they lose part of their allowance for the week.
Some parents give their children money without requiring the child to earn it. I don’t like this option because I like giving a value to the money. When children have to earn it, it means more to them. However, if you don’t like the idea of putting your kids to work, you can still teach them about money. I would still suggest assigning a requirement to the money, such as good grades or good behavior.
Whatever option you chose, staring an allowance with your children will teach them about working, how to spend money, and how to save it as well.