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Ask WomensFinance? : Answer |
Q: What age should I
start giving an allowance? How much?
A: Your
9-year-old daughter is pleading with you, telling you what a great mom you will be if only
you would buy her the newest Spice Girls CD. Just an hour ago she was yelling at you,
saying you how mean you are for not allowing her to sleep over at a friends during a
school night. You're savoring the attitude change and don't want it to end, so you buy her
the CD. She hugs you all the way to the car.
Three days later she explains how the Spice Girls are sooo... out, and she has to have the
new Brittany Spears CD or everyone will think she's a geek!
Yes, it's time she had an allowance.
Three frequently ask questions by parents when considering an allowance:
- What age should I start giving an allowance?
- How much should I give?
- Should I make my child earn her allowance?
Let's take a look.
1) WHAT AGE?
Many specialist say that by the age of 3 or 4 children have learned that money can be
exchanged for food, clothing, toys, etc. As soon as your child seems to have an
understanding of this and is asking you to buy something for them every time you go to the
store, they are ready to have an allowance.
2) HOW MUCH?
One popular method parents follow when calculating how much allowance to give their child
each week is $1.00 per year of age. As your child gets older, however, you may need to
reevaluate the needs of the child. What is the child expected to pay for? Movies?
Clothing? Birthday and Christmas presents? Whatever you decide it is important to make
sure that it is enough for both spending and saving. Giving your child allowances should
not be a question of whether or not you can afford it. You're simply giving them money
that you would normally spend on them, but now they are in charge of managing it.
One important thing to keep in mind is that it isn't a question of whether or not you can
afford to give your child an allowance. You are simply giving them money that you would
normally give or spend on them, but now they are in charge of managing it.
3) SHOULD THEY EARN
IT?
According to the famous Dr. Spock, as well as many other child experts, allowances should
not be tied to chores. Allowances teach money management. Chores teach family
responsibility.
What if your child decides he doesn't need an allowance one week? Does he get out of doing
his chores? Every time you ask your child to do something for you do you want them to ask
"How much"?
However, if your child is trying to save for a "big-ticket" item, specialists
agree it is fine to offer them a chance to earn extra money through chores that are not
usually required of them. You may just want to require that the earned money go directly
into their savings for that particular purchase.
Allowances are an excellent way to help your child avoid becoming a financial failure
and will instead, give them a healthy understanding of money management. By giving your
child an allowance, you're teaching them how to budget, how to spend wisely, and how to
save. Remember. They will make mistakes. But it's important to hold your tongue and let
them learn from these mistakes. They will thank you for it in the long run.
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