Allowances for Children Family Money Matters
If you ask around, you’ll get all types of responses to the question of how much money is enough, but not too much… or at least, I did! Answers ranged from a couple of bucks per week, to a dollar per year of age, to a larger chunk of cash. There are a few considerations, including what the child is responsible for (see below) and how much you can afford. We chose an amount that was somewhere in the middle of what her similarly aged friends were receiving.
What’s It For?
Your child will need a larger allowance if she is responsible for buying clothing, school supplies, and the like, than if she is only going to be spending her money on candy bars, movie tickets, and earrings. In general, the older the child, the more responsibility she should have, and the more money she’ll need. Although our diva-in-training wanted to buy shoes with her allowance, that wouldn’t be typical; at her age, her allowance is for “fun” things (which red, glittery TOMS shoes are). Also, each family needs to decide whether part of the allowance needs to be saved for the short- or long term, and whether a percentage should be donated.
Should It Be Linked to Chores?
This seems to be a biggie when it comes to allowance discussions. In our house, the kids have chores, and up until now, they have been doing them for no pay. In other homes, though, kids are paid to do things like vacuum, unload the dishwasher, and keep their rooms neat. We decided not to link chores and allowance… but as the kids get older and their responsibilities increase, I could see that changing. Maybe we’ll add bonuses for things like vacuuming out the car or washing the windows. We’ll see!
So, as the weeks have passed, we’ve made a few tweaks and changes, and I’m pretty happy with the way things are going. She has almost enough to buy her shoes, which are still number one on her list of things to buy. The next lesson I’ll be teaching her is savvy shopping, which I think she’ll be interested in, seeing as how it’s now her money that she’ll be spending! Soon she’ll be a pro at hunting down TOMS coupons, scouring the clearance racks, and asking store employees when coveted items will be going on sale. This is going to be so much fun!
Do your kids get an allowance? How have you handled some of the issues that go along with it?