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How to Determine Allowance for Kids

To be a kid again and receive an allowance for something small like a chore. While this may seem like not a big deal to an adult, it’s a very big deal for kids. One of the hardest parts as an adult is trying to determine an allowance for your kids. Here are some tips to keep in mind:

How to Determine Allowance for Kids

Determine the right age

Every family has to determine at what age their child will start to get an allowance. Some families start young and some families wait until their kids are older. The first step in determining an allowance for kids is to determine the right age. Honestly, the best age for an allowance is the one you determine. Obviously, a five-year-old child will get a lot less than your high school senior.

Teach your kids about money first

Before you even hand out an allowance, it’s important to teach your kids about money. Let them know what money is and how it works. There’s no point in giving your kid an allowance if you cannot teach them the basic principles of money first.

Give commission not an allowance

Some of you may not agree with this, but it is what it is. Instead of handing your kid any kind of money, think about giving them a commission. The commission is based on the number of chores they do. The more chores they do, the more money they get. You don’t have to hand over your whole paycheck, but it’s amazing how much more kids learn from working for their money. Trust me, this will take some work from the whole family, but at the end of the day your child will learn more about the value of hard work!

Teach your child how to spend their money

When most parents hand their kids money, they take their child to go buy something. Something important to note is that children need to learn more about money than just spending. Think about your finances and all that was involved. Teach your kids about saving, spending, and giving! Money is something your child will be using for life, so teach them anything and everything you can about money and its process.

Know what may work best for your children

You may hear of families that pay allowances on Friday. The kid doesn’t necessarily do anything that is just what the parents have decided to do. I can’t tell you what to do, but I encourage you to really think about commission versus allowance. Whatever you choose, it’s important to be consistent. You’d be surprised at how children start to rely on/look forward to something like this. Also, be consistent in making sure the children are doing the chores (if they don’t do the chores, they don’t get paid).

Immediate reward works best for most kids

This may make some of you turn over in your graves, but immediate gratification works best for most kids. Whenever they KNOW they are getting paid right away, they get excited about doing chores. When you offer payment right away, your kids may skip the nagging and do what they are expected to do right away. Think of how much you enjoy instant gratification; the kids are the same way.

When it comes to determining an allowance for the kids, make it about hard work and ethics. If your five-year-old does nothing and your seven-year-old does a ton, it’s only fair that the seven-year-old gets paid adequately for what they did.

Also, I’m not a huge fan of paying for every single chore. Kids have to learn to help out around the house without getting paid every time. The fun part of being a parent is that you get to choose which chores are worthy of getting paid for and which ones are just a part of their everyday routine.

I’d love to know, how much do you give your children for allowance?

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