Kids’ allowance can be something that parents stress over. Trying to figure out how much allowance to give your child, how often to dole it out, and at what age you should increase it can give you a headache! But this list of tips for managing kids’ allowance will set your mind at ease and give you a general guide to stick to, so that you know you’re not over-indulging or being too stingy. Keep on reading to make sure you and your kids are both satisfied with their allowances!
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1. Keep It Simple
When determining kids’ allowance, there is no need for complicated processes. Keep it simple to save your sanity! Decide whether you want to pay allowances weekly or monthly, and choose a method for passing out the dollars. It could be an envelope system, a piggy bank, or even a pre-loaded bank-card (for older kids). Pick something that works efficiently for you and your family.
2. Be Practical
What do you expect your child to pay for with their allowance? Consider whether they will be required to pay for their school lunches, school supplies/clothes, personal hygiene products, and other necessary items. If you expect your child to pay for their own toothpaste, hairspray, and pencils with their allowance money, make sure you give them enough to cover these expenses and then have leisure money left over. Otherwise, remember that you do have to factor in everyday expenses, and when you give your kids their allowances, don’t give them all the money you have budgeted out to spend on them that week if they don’t know they need to pay for certain necessary items with that money.
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3. Stay Budget Conscious
This is probably a tip that most parents already consider, but it’s worth mentioning regardless. Keep your budget close by when you are handing out allowances. Bills will not pay themselves, so try to offer some wiggle room in your budget. Don’t promise your kids money that you don’t have to spend. It’s better to settle on a lesser amount, and then when you have the extra leftover, throw it in as a bonus!
4. Don’t Offer a Free Ride
One of the best things about an allowance is that you can use it to teach your child the value of a dollar bill! Instead of just giving your child an allowance, explain that they need to earn it, just like you earn your money. Set up chores or errands or favors for them to complete each week. For older kids, things like dishes, taking out the trash, babysitting siblings, or running easy errands for you are great! For younger kids, picking up their toys, folding towels, helping put away books, or other simple tasks are more ideally suited to their ages.
5. Use the System
Allowances can be sometimes taken for granted, so make sure you use this opportunity to let your children know how important money is. No need to preach down their throats, but make sure your children learn that money should be valued, not squandered. Encourage them to use their own money to buy birthday/special occasion gifts for their loved ones or to do nice things for their friends/siblings. This will teach them to be generous adults!
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6. Allow for Wiggle Room
While it is a good lesson to learn, money responsibility can sometimes get old and especially for kids. Remember that children, no matter their age, will occasionally want to spend their money on toys or other impractical items. Remind yourself that it is their money to spend as they see fit, and let them enjoy a little fun! To put a cap on their needless spending, lessen the amount of money you give them each week if you feel they are squandering too much away.
7. Teach Money Responsibility
Never make too many demands with your child’s allowance, but it’s not too much to expect if you teach them to put a portion back into savings. It could be as little as $1 per week, or as much as $20 per week. The amount can be agreed between the two of you or chosen by your child. Starting a savings account at a young age will be a rich gift for your child’s future!
With these tips in mind, you can feel confident that you are being fair when you give your child their allowance! Depending on your income and your child’s age, each family will differ, but the ultimate end result is that you give your child a fair allowance for your status. What tips and hints do you have to offer along the lines of doling out fair allowances for children?
