Allowance Strategies

Deciding on whether to give an allowance, and how much to give can be tricky. First, decide what items your child will have to use allowance for. Will he have to pay for his activities, like attending a movie with friends? Or is it just spending money?

Once you’ve determined the spending guidelines, it will help you determine a proper amount. Be careful of giving a large allowance without requiring any effort on your child’s part. Learning the value of hard earned money is a worthwhile lesson.

In addition, I’m a firm believer that kids shouldn’t be paid to do things like clean their rooms, because it’s important to for them to learn that they can, and should, take care of their things and contribute to our household. Be clear on how much allowance they’ll receive, and spending restrictions, and any requirements that are tied to receiving it. Most of all, teach your children to give, save then spend.

Making Allowances: A Dollars and Sense Guide to Teaching Kids About Money by Paul Lermitte

The No-Cash Allowance: A Practical Guide for Teaching Your Children How to Manage Money by Lynne L. Finch

Have a New Kid by Friday: How to Change Your Child's Attitude, Behavior & Character in 5 Days by Dr. Kevin Leman