Is It Time to Start an Allowance ?

It is never too early to start teaching your children about money.  As they grow up and see you buy things they will think that money does indeed grow on trees unless you start early with teaching them about where money comes from and responsible ways to use it.

A great way to begin doing this is by giving them an allowance.  You probably had one when you were young and now it’s time to pass the torch on to your children.

There are several ways you can begin to do this.

1. Some people give their children an allowance based upon chores with specific money amounts.  For example, you can decide to pay your child fifty cents a week for setting the dinner table and $1.00 for keeping their bedroom clean all week.  Decide what chores your child will have based upon their age, and then show them how to do the them correctly.  Have a learning curve period. And then let your child know ahead of time how much they get for each job.  Keep track.  Decide how often they will receive the money they have earned.
2. Another option is to have a set amount of allowance based on their age.  This is what my parents did. My sister and I earned $5 a month (I’m telling my age here).  And we had household chores. We made dinner certain nights and we washed dishes each night. 
3. You can also give your child money without requiring the child to earn it but this option doesn’t really add a value to the money and the child will not know the value or earning money.  When children have to earn their money it means more to them.  But regardless you can still teach your child about money.  Try assigning a requirement to the money, such as good grades or good behavior.

Whichever option you chose, starting an allowance with your children will teach them about the value of good work, earning money, how to spend or share it, and how to save it as well.