How Much Allowance for children?

An allowance is an important part of growth and plays a significant role in developing the ability to manage money. Seen this way, management and reporting on it can be different if you think of it as just a tactic to control the influx of toys at home.

When starting a child's allowance? At the age of six years would be the right time to start, after the children can count and begin to understand the price of different things that you want to buy.

And, how much to give? A good rule of thumb is $ 1 for each year of age, or so says TheAllowance: It's not just about money in NewYorkTimes. Or, as the counters article, "half of that," noting that most people decide compensation based on a very unscientific survey or friends and family.

The New York Times article cites a Yankelovich study, breaking down shares from $ 5 to $ 9 for 6-11 year olds, and $ 10 - $ 19 for 12 to 17 years (which conveniently fits the rule of thumb). Like many things in the financial sector will have to figure the rate is more appropriate for your area and the child, and expect negotiations to continue, as your children grow.
Some other things to keep in mind:

1. Keep the allowance accounting simple and clear. If you hold the money in your wallet for your child, keep written records that the child can control easily. You do not want to be in, "she said, she said" situation due to a couple of dollars.

2. Experts disagree on whether a check is "right" or a quid pro quo for doing chores. Some think it's important that your child see the value of work to earn money, while others believe that children need to understand that chores are a thing is done as part of the family, and are separate from compensation. Like a lot of things about parents, it is difficult to say who is right or wrong, or better for the child as a life lesson, and much will depend on your philosophy or worldview. You might consider a mixture of the two in which some work (eg taking out the trash, empty the dishwasher, and shoveling snow) are part of family responsibility, while other work is compensated by, or outside compensation.

3. Since a check is an important aid in management education money, pay the check at the same time every week without fail. Keeping a tight schedule, like a paycheck, allows the child to plan and budget, what are the skills you are trying to develop.

4. Consider putting away an additional sum for the charity or long-term savings, so that the child can monitor this in the long run. Avoid making this a matter of bookkeeping, keeping the math simple (ex. $ 1 week = $ 52 a year in charitable fund to allocate, at the end of the year) and only reporting on it at longer intervals, say quarterly .

Amazon has several books on raising kids Smart Money, and The New York Times recommends raising kids Smart Money by Janet Bodnar Kiplinger Personal Finance for (I have not read this book). Most of the rules and bonus amounts will be subject to change over time as children develop their tastes and needs that fall far from the opinions and views of Mom and Dad. Making a child of six years, pay for their own movie with mom and dad is not the same thing watching your roll of 17, his driveway on his way to make his choices of movies. Good luck with the evolution in your thinking process, while trying to maintain some consistency in communications....