Allowances for Children

Children need to learn about money and what it takes to make it. I think it is a great way to teach them responsibilities. You do not have to give them so much a week but a little. When giving children an allowance, give them the money in denominations that encourage saving. If the amount is $5, give them 5-1-dollar bills and encourage that at least one dollar be set aside in savings. Keeping good records of money saved, invested, or spent is another important skill young people must learn. To make it easy, use 12 envelopes, 1 for each month, with a larger envelope to hold all the envelopes for the year. Establish this system for each child. Encourage children to place receipts from all purchases in the envelopes and keep notes on what they do with their money.

Have your child do house work to earn their money. Taking out the garbage, cleaning the table, putting clothes into the washer, or even helping you wash the fruit and vegetables for dinner. Household chores - If you ask your child to perform certain household duties such as taking out the trash or cleaning his or her bedroom, show your child how to do it (the behavioral steps) and clearly explain your expectations. When children know how to complete a task and take care of their personal belongings, they learn what it means to act responsibly. Children love to help out and be rewarded. Learning about money and the value connected with money is far too important a lesson to attach it to household tasks. And household tasks are far too important to be put in a situation where you take away money as a punishment." 

Give your child the "Chore Money" and an envelope to keep it in. Be sure that your child understands that they are responsible for the money and if they lose it, they start over. Some chores can be cleaning the toilet, wiping off counter tops, sweeping, cleaning draws, putting their clothes away, vacuuming, dusting, putting away silverware and dishes, feeding pets, taking out trash, helping with younger siblings. All chores should be adjusted according to age and ability. Do not expect a young child to do an adult’s job like washing clothes or cutting food.