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Children Allowances

Allowances for children can be a touchy subject for parents. Some parents believe that their kids should not have an allowance and some do. Others would like to have their children receive an allowance in return for household chores.

I believe that all children should receive an allowance. Period. An allowance, no matter how large or small (the amount is up to you and I will cover that in a bit), will provide you a perfect opportunity to teach your child about the value of money and the basics of managing personal finances.

Why should your kids have an allowance?

  • An allowance will help teach your child how to become an adult with good money management habits.
  • This will help them set financial goals and learn how to live within a budget.
  • Having money will help them make choices for themselves and understand how to balance their needs with their desires.
  • They will realize that everything has a value attached to it. They will start to understand they can't have everything that is advertised on television. A big plus if your kids are always asking "Can I have that?"

How much should the allowance be?

Your child's allowance will probably be based upon factors such as the age of your child, your financial values and what the allowance will be used for.

Don't set the allowance too high or too low.

What is too high & what is too low, you ask?

Don't make the allowance so high that tough choices never arise for your child when making a financial decision. Your kids will not learn how to set budget limits or have to save up for a purchase.

On the other side of the coin, if the allowance is too small, they will not have many opportunities to make any financial decisions. If they can't flex their financial decision making muscles because the amount of allowance is too low, they are missing out on learning opportunities.

As your child grows, the allowance should probably grow as well, since the items they will be making financial decisions on will be a bit more significant than gumballs and lollipops when they were younger!

How often should my children's allowance be paid?

When they are quite young, probably every week. As they get better managing their money and setting and following budgets, move it out to two weeks. When they are young teens, maybe once a month is adequate. Everything is up to you of course, so see what works for you and your kids!

Also, take the time to consider saving for your children's college. Upromise is a great way to help save for free!

When I first found out about Upromise I was so excited! Why? Because you can save for your children's education just by doing what you are already doing! When you sign up, a portion the money that you spend already on gas, groceries, resturants, online shopping and more get's deposited in your account for their school expenses! It's a completely free way to help you save for college.

With Upromise, a portion of the money you and your friends spend every day on groceries, resturaunts and and much more will go into an account for your children's college! Upromise - FREE Money for College!

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