Do you give your children an allowance?
Whether or not to give children an allowance – and then how much to give them – is a topic that I often hear discussed among parents both on and off line.
Over the years, my husband and I have gone back and forth, and I hate to admit that we haven’t been extremely consistent on allocating our childrens’ allowances. The fact is….I believe in allowance. I think it is important for children to have experience handling money from an early age, and birthday money once a year doesn’t necessarily give them enough experience handling money to teach them any long-lasting lessons.
So why do we so frequently fail when it comes to giving allowance?
Here are some things I love about giving children an allowance:
- Giving children an opportunity to earn money regularly helps them learn how to spend AND save wisely.
- Having their own cash teaches kids the value of money.
- When my kids know that their allowance could be taken away, they are more likely to follow up on their responsibilities around the house.
- After being able to save money on their own, my kids are more willing to share and spend money on others (ie – a birthday present for a sibling).
- Children who earn an allowance are less likely to constantly ask for cash from Mom and Dad.
- Handling money teaches children responsibility.
And here are a few reasons why I stink at giving an allowance regularly:
- I never know what is a “fair” amount.
- I rarely have enough cash (especially small bills) to pay all 5 of my kids.
- I forget.
- My husband is a stickler for only giving the kids an allowance if they have done certain things….and often they haven’t done everything.
The fact is that my “excuses” for not giving my kids a regular allowance are really not valid. The benefits of an allowance far outweigh the challenges that I have with giving it out.
I’d love to hear your feedback on a few questions:
- When is the perfect age to start giving an allowance?
- How much do you pay for a child’s weekly allowance?
- Do you require certain jobs/chores to be done before giving an allowance?
- What are your biggest challenges with allowances?
Disclosure: This post was inspired by Kidworth, a free service for parents to help teach children money management that will last a lifetime. I am a Kidworth Ambassador and am compensated for my involvement in the program.
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Our two youngest are too young for an allowance, but our 7 year old gets one. Unfortunately, I am like you and often forget. You would think he would remind me, but he forgets too! I remember best when I put up a weekly chart and mark it off as he does the chores.
I find an allowance also helps him further appreciate the value of money because money is now linked to a work effort rather than just something you ask mom and dad for.
This is SO fun! :) OK…I have quick thoughts on all. Here goes:
When is the perfect age to start giving an allowance? My vote is four. As soon as a kid understands that money exists, you’re ready to get started.
How much do you pay for a child’s weekly allowance? Rules of thumb are $1 for every year of age (so a 7-yr-old would earn $7) OR $1 for every year in school (so a 2nd grader would earn $2). I pay my seven-year-old $37.50. It’s methodical craziness. Here’s the background: https://earnmykeep.com/thought-of-the-week/205-yes-i-pay-my-seven-year-old-3750-a-week
Do you require certain jobs/chores to be done before giving an allowance? YES. Real jobs. Last week my daughter was a tour guide and my son was an actor. This week they’re cheesemakers. Do you happen to know any real cheesemakers? I have no idea how they make cheese.
What are your biggest challenges with allowances? LOL! Thus far my biggest challenge has been staying in front of my program — anticipating my kid’s next financial experience. But that’s clearly not the norm for everyone.
And I’ve got some ideas on your “reasons why I stink at giving an allowance regularly”:
* I never know what is a “fair” amount. (Email me — I’ll help you figure it out!)
* I rarely have enough cash (especially small bills) to pay all 5 of my kids. (Check out MoneyTrail.net and FamZoo.com — both virtual family banks started by amazingly wonderful parents. I was not paid for this endorsement. They don’t even know I’m making it. Maybe I’ll tell them…)
* I forget. (Who wouldn’t?? Check this out — it applies for any money program: https://earnmykeep.com/hey-alisa/201-alisa-says-that-your-children-should-get-paid-regularly-and-this-should-be-a-very-consistent-thingid-be-afraid-to-start-the-kids-on-this-and-then-have-some-off-weeks-michelle-goodreadscom)
* My husband is a stickler for only giving the kids an allowance if they have done certain things….and often they haven’t done everything. (Consider a sliding scale…certain chores can be worth certain amounts. Also consider making them responsible for paying for things they really want or need (school lunches, entertainment with friends). They’re more likely to make sure they have the money if it directly affects their lives!)
:), Alisa.
Excellent tips and advice! Thank you!!
To Allowance or not? We decided quite some time ago to do this with our kiddos. Here are our parameters…
– We pay the kids once a month according to their age. Our 14 year old gets $14.
– I pull out the cash from the bank in small denominations…lots of ones.
– They are required to divide it as follows: 10% tithe, the balance divided between saving and spending. This is where the teaching comes in…my spender learns to budget and ask “do I REALLY want this?” and my saver we encourage to spend on something like a game every so often. BOTH are important, spending and saving, it’s just moderation.
– Here’s the tricky part. It’s not necessarily linked to chores. We keep the option to not pay if they are in serious disobedience, but essentially, they are a part of the family and chores go along with that. The allowance for us has been a teaching tool for finances.
-I think we started around age 5 and it has been wonderful! They are learning, and don’t bug me for cash all the time! :)