Parents always ask about allowance – when to start it and how much to give.
First – when to start…
You can begin allowance when the child begins to have a very basic understanding of money, usually around 4 or 5 years old. Or earlier, if every trip to Target includes a “can I buy a toy?” discussion.
How much?
Some parents use the $1/year rule, however, a more effective strategy in determining how much cold, hard cash to give for allowance is as follows:
In determining your child’s weekly allowance, you should ask yourself three questions:
1. What do I expect him/her to buy with that allowance? (Savings, charitable contributions, lunch money, spending money, activity money, etc.)
2. How much will he/she reasonably need to do that? (Keep in mind any money they receive from grandparents, etc. during the year.) In the teenage years, consider giving a lump sum (not too much) for the purpose of buying clothes. The child can make the decision on how that money is spent. She can buy one pair of designer shoes or three pairs of fashionable, yet reasonably priced shoes. Once the money runs out, that’s it. Do not give in and “float a loan” until the next allowance date.
3. How much will make him/her just a bit uncomfortable? We don’t want children to be too comfortable or they will lack incentive to work harder! Again, in the teenage years, less money is better than more. It helps them to find a job and it will perhaps make them think twice about spending money on cigarettes and drugs.
More on allowance later. There’s a lot to talk about on this topic. How are you using allowance?
Amy McCready is a highly sought-after parenting coach, speaker, consultant and author of “If I Have To Tell You One More Time…The Revolutionary Program To Get Kids To Listen Without Nagging, Reminding, or Yelling”. After taking time off from her career to raise her two sons (now teenagers), she founded Positive Parenting Solutions in 2004 to help educate parents on how to effectively communicate and connect with their children. Through her online parenting courses, live webinars and speaking engagements, Amy has gained widespread attention and has been called upon as an expert by numerous media outlets, including NBC’s TODAY Show, The New York Times, The Rachael Ray Show, Fox & Friends and MSNBC.
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