A Kids Allowance is Their First Money Lesson

There can be no finer way to education a child as to the benefits of working for a living then providing a kids allowance to them. But this shouldnt merely be considered as handing over money to keep them happy. A kids allowance should be earned either through household chores or good grades. This way they will truly come to understand the value of money and of work.

Determining the amount of a kids allowance is key to making everyone happy. How much is too much? Obviously what worked for you back in the day might not cut it now. One way to measure an allowance amount is to track how your kids spend any money you might give them on a weekly basis. Are they using their funds to go to the movies, buy magazines or video games or just hanging out with the crew? Clearly a range of ten to fifteen dollars a week can help them pay their way. That might seem like a lot but consider what things cost today. Even a trip to a Saturday movie matinee will run them about twenty bucks when you add popcorn and a soda.

In exchange for a kids allowance, they should have a specific set of tasks that need to be accomplished in a given week. This can run the gambit between mowing the lawn, cleaning their room or doing the dishes. Whatever the chore, make sure they dont cut corners. You dont want them to learn how to cheat the system. Any arrangement should be worked out between the both of you. It might even help to draw up a friendly contract. This way your kid will know exactly what is expected of them. As for them achieving good grades, you might want to think about a bonus allowance. Dont think of this as a bribe but as incentive for hard work.

Along with giving a child their own sense of responsibility with having money, you can also encourage them to save their allowance towards bigger purchase items like a new bike or skateboard. If they are making money, there should be no reason why you have to keep reaching into your wallet. As mentioned above, this will provide them with a strong work ethic and growing appreciation of what you have to go through to earn your own salary. Setting up a kids allowance will give them lessons that last a lifetime.

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