Kids AllowanceThe best ideas about kids allowance. Should children be given an allowance? If so, how much? What percentage of parents give their child an allowance? An Allowance for Kids is Controversial
Children allowance has always seemed to be a controversial topic. On one hand, many parents feel that an allowance for children is the best way to teach children money handling skills. On the other hand, parents do not want their children to develop a sense of entitlement and feel like mom and dad always owe them something. I think that all parents can agree that they want their children to learn money responsibility. So is an allowance a good thing for you and your children? Hopefully this web page will give you some good things to think about as you determine the best way to handle an allowance for kids. Janet Bodnar's Advice on AllowanceJanet Bodnar, the deputy editor at Kiplinger's Personal Finance, says that, "Giving your kids an allowance is the best money-management tool you can use with your children."All of us, children or adults, make mistakes and hopefully learn from them. Most kids will freely spend as much money as their parents will give them, but when it is a question of spending their own money, they are much more careful in making spending decisions. Should Child Allowance be Tied to Chores?Most child-development experts agree that child allowance should not be tied to chores. Kids need to feel that they are part of the family and are making their own contributions. Connecting chores to allowance may contribute to a sense of unhealthy entitlement.Connecting chores to allowance may make for problems when kids get older and make money from other income sources. They will no longer be required to do chores to have some income and may rebel against doing chores. What Age Should Children Be Given an Allowance?
How Much Should an Allowance Be?Janet Bodnar has stated that kids allowance should be half of the child's age on a weekly basis. That means if you have an eight-year-old, the allowance would be $4 per week and approximately $16 per month.When deciding upon an amount, consider what your child will be expected to pay for with the allowance. Will the child be expected to pay for school lunch, extracurricular activities, or other items? Return to the top of Kids Allowance Money-Management-Works Home Page
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If an allowance is something that you want to do with your kids, I think the best time to start is at a very young age. This will help minimize the effects of a poor decision. Making a poor money decision with $2 or $3 is much better than making a poor decision when the stakes become higher.
