How much Allowance is Allowed?
Well, we’re all struggling with this one!
Just how much allowance should we give our children? The answer is none!
Allowance should be EARNED and not given or expected! Allowance should not be used to reward good grades or sports wins…and when your child’s allowance is spent,,it’s gone.
Experts agree that you can start discussing money with your child as soon as they understand it (age 5+). However, you will quickly learn that they already have a foundation around money from your unspoken behavior at home, its benefits and frustrations. Start by getting them a piggy bank which they can put birthday moneys into graduating to a bank account, accordingly.
Teach them the value of money by associating it with certain tasks around the house. If you compute the value of money w/ min wage, it equates to about 10 cents/minute. Chores can be assigned a value based on how long they take to complete. ie raking the yard - $3-$5, keeping room clean/trash removal - $2.50 every other week, etc.
When your child asks for money or a toy, deduct the money from their bank account. If there is no money available, then none should be given. You can give them a job to earn the money if you really want them to have something ,,,vs giving them money!
…and remember no credit cards,,,use a debit card instead!