Written by: Chris O'Shea | savvymoney.com
Giving kids an allowance can be a great way to teach them the value of money. Perhaps that’s one reason why so many parents do it. According to a study from T. Rowe Price, about 70 percent of all American kids get an allowance. Here’s what you should know.
For starters, don’t tie allowances to chores. You want your child to learn that being a part of the family means doing their part to contribute through chores. You don’t get paid for emptying the dishwasher, so why should they?
Additional Jobs for Kids
Instead, allowance can be given for additional tasks above and beyond household chores, like:
This way, they’ll learn that money is tied to work, not just doing the things they’re supposed to do.
Now that you are giving allowance, use it to spark up discussions about money. As your child grows older, talk to them about budgeting their allowance. One idea is to:
Remember that—above all—giving an allowance is a chance to teach money habits that can last.
Do One Thing: Search for ways to talk about money every day. The more your kids understand, the better off they’ll be.