Pay your kids an allowance

Often when budgets get tight, people cut out giving their kids allowances, and instead give them money as needed for specific things or outings. Instead, I encourage you to continue to give you kids an allowance and sit down with them to have a talk about it. When you talk, be specific on what you expect them to pay for, and when they should ask you for the money. This will help teach them money management skills at a young age and make them better money managers later in life. As a general guideline, most pediatric sites reccomend you give the children $1 per year old they are each week. Of course each family budget is a little different, but here are some basics to get you thinking about the subject.

Chore ideas a child can do to earn their allowance?

• Feed and bathe the family pets
• Water the plants
• Empty the trash
• Vacuum
• Mop
• Watch younger siblings one night a week
• Sort recycling and take to curb
• Trash cans to/from curb on trash day
• Dust
• Load/unload dishwasher or wash dishes
• Set/clear dishes on table
• Pull weeds or help in garden
• Shovel snow
• Carry in groceries and help put them away
• Pick up their room
• Put away clean clothes

Should you adjust the allowance?

• Don't pay for jobs half-done. This only encourages them to do the miniumum which won't be acceptable as a working adult.
• Do throw in extra for additional jobs they do without being asked. For example, if you come home to a spotless house it would definatately be worth a couple extra dollars. Just keep in mind that this is way cheaper than paying a cleaning lady.
• Do throw in extra for good grades or a shining teacher report from school. This shows them that if you work hard in school you can reep financial gain.

What should their allowance pay for?

• Snacks such as pop, candy, popcorn etc. Not asking you for $5 every time you go to a ball game or store will help YOUR bottom dollar and encourage them to bring snacks from home. This will help them understand the concept of per item pricing and how packing your lunch will save you money in the long run.
• Toys, if they want that $100 set of Legos they need to save or it. This will help them understand the importance of saving for future purchases.
• Admission when going to theme parks etc with friends. No funds left means they can't go. This will help them learn the importance of not letting their balance get to low because unexpected things come up.
• Have them pitch in on new clothes. If you are willing to pay $10 for a t-shirt and they want the designer one for $20, make them pay the difference. Its amazing how they have to really decide if paying for the brand name is important to them vs having money for something else.
• Souvenirs on vacation. Often kids want every item they see in the gift shops on vacation. When they have to pay for it, this is a way to teach them to shop around for the best price. Saving for vacation is also something you can do as a family.

Pick pulled from Savvy Daddy