Our latest topic is…allowances and money with children.
You may not trust your child/ren with money now, but once the child is older, you realize that they make wiser decisions in how they use it. At the moment, I’ll bet a lot of MONEY (hemhem) that you are thinking, “Where is this discussion going?” Well, you’ll find out once you’re done, and maybe you’ll change your mind about children, trust, money, allowances, and chores. Usually, on a trip to, say, Target, you’re the one with the Visa in hand, spending, and your kids aren’t too particular about what they want, and how much it costs. With their own allowance, kids have the reins, and they are very particular about sales and condition, and if they will even use it at all.
The basic ‘first step’ of allowances with children is this: finding out what they can do to earn it. Some parents stick with the old ‘do good in school’ or ’sweep the kitchen floors’. But kids can do so much more. Eating their vegetables, being nice and unselfish, staying out of trouble at school, getting A’s on a majority of their tests…etc. Reward kids for what they do that’s right. They’ll see that if they do things that are good, they can be rewarded. This is definently a life lesson. Even before this step, you may want to step back and examine your children’s behavior, age, and boundaries before you say who does what and what goes to who.
Step two: Finding out a decent allowance for the child’s age. MSN Money contributes to the situation by telling you a little about how other parents handle this situation. Most families go by how old their child is every week. So, for example if the child is 8, they would get 8 dollars every week. Simple, isn’t it? Moving on.
Here’s step three. Giving your child their allowance. If you want to make something fun without spending any or a lot of money, you can make a small transaction counter. Using old mailboxes, shoe boxes, or money boxes with keys, you can make money more fun for kids. We recommend using shoe boxes for younger kids, mailboxes for older kids, and money boxes for oldest kids. It shows what your child can do, and also tells them that getting money isn’t just a quick snap of your fingers. Also, pick a suitable date and time to recieve the money. On Fridays, after dinner, or after school, kids could have their collectives and be on their way.
Step four: Starting it. Make sure that you start your allowance collecting on the day that you will hand it out. It makes it less stressful and can become a weekly occurrence for you. Also on the ’starting it’ part is the bit where you think about when you give it. Not the date, or time, but the schedule. Is it daily? Monthly? Weekly? Even yearly? We suggest weekly because it gives kids a chance to look at their amounts and say, ‘I have a goal, and in 5 (example) weeks, I’ll be able to reach it.’. Daily can get annoying: “Time for my allowance!” “Not now, I’m busy…”Monthly can be stressful: “Is it the 31st yet?” “No, it’s the 13th! Stop asking!” And the yearly can be just untrustworthy.
Step five: Keeping it. Don’t be a liar and brush off your responsibilities. You had a deal with your child, keep it. Don’t lie about how much you gave them. Don’t lie about what day it is. Be honest, and you’ll feel good.
Think about it. How will you look at your kids after they have an allowance. Do you think it is appropriate for their age level? Do they brag constantly about it? See if it has an effect on your child’s behavior.
If you have any questions, feel free to email me on this topic. Princesscoffee@ameritech.net is always available, and I love getting mail!
More questions that you aren’t sure about? Go to these sites for more information on kids with money, chores, allowances, behaviors, and responsiblities:
Free The Drones Personal Finance Blog
Hope this helped! 
Taylor
Leave a note about this topic so I know what you think abot it! Maybe I’ll extend it for awhile…maybe, even permanently.