Allowances Teach Financial Management Skills

Allowances enable children to begin to understand basic money management concepts.  Kids who receive regular allowances are able to start making choices about what they can save, spend and share.  Children who receive money on demand are unable to plan ahead and make important choices.

• Allowances should start when a child is six years old.  Once kids start the first grade, they begin to learn about money.
• Keep allowances reasonable and the process simple.  Allowances can be linked to chores or spending/saving responsibilities.
• Give allowances at regular intervals
• Weekly is a good starting point for younger children.
• Six-year olds need at least $1 - $2.00 a week to do any serous saving or spending.  Some parents choose to give allowances values at half the child's age. 
• Talk to other parents to find out what they are giving.  You know your child best, so make sure the allowance fits his or her needs.