What age do you start to give an allowance and how much?

Shellee - posted on 12/31/2008

I agree with those of you who said allowance is for learning to manage money. Period. Do you get paid to do your household chores? Your children shouldn't, either. Chores are about family responsibilities - a totally different area of growing up than managing money. I think taking taxes out of an allowance is weird. It's a pretty complex idea for a child (and, once again, allowance is about money management, not household responsibilities).

I started giving my kids an allowance when I got tired of hearing, "Buy me . . ." My son was 7, my daughter 5. I gave them their age each week ($7.00 and $5.00, to begin with, with an automatic raise each year on their birthdays). I encouraged them to save part of it for "big ticket" items - toys or video games, or whatever. They also bought Christmas presents for family members with the money they'd saved. I considered this their money, and I had no control over how they spent it, although I advised them when asked. It was a terrific learning experience for them. When they reached middle school age, we switched to a monthly allowance deposited into their own checking accounts, and the amount included enough for school lunches, activity fees, birthday gifts for friends, movie tickets and refreshments, etc. When my son went away to college, he was able to manage his money from the beginning, even though his monthly allowance - and his financial responsibilities - were much bigger than ever before.

Rhonda - posted on 12/31/2008

I couldn't afford it. So my kids didn't get an allowance until they were about preteen. When I got more money. They live here so they need to help out. My son complained about doing chores. I stopped the allowance. He still had to do chores. I told him when he stops complaining I will give him back his allowance. My kids always had what they needed. Birthdays and Christmas was for things they wanted.

Pamela - posted on 12/31/2008

My 8-year-old is going to be getting an allowance for the first time, starting January 1. She will be getting $7.50 per week, of which she has to save $1.50 and donate $1, to any charity she chooses (she has chosen the ASPCA). She has to do certain chores just as part of her responsibility to the family and also earns more money for doing extra, more difficult, jobs. Now that she is getting an allowance, any items she wants to purchase (other than food and clothes) are her responsibility. We'll see how it goes!
I like the household tax idea, too!

Zoë - posted on 12/31/2008

Thank you everyone for the help! I like the household tax thing too - everyone can spend money but not everyone can spend it responsibly (I'm guilty of that sometimes!) I want to raise a money wise kid who appreciates what she has and these ideas are a great way to start.

Jennifer - posted on 12/18/2008

My daughter is almost 4 and I pay her .25 cents to feed our kitties. She then takes her quarter (which is teaching her the words for money and cents) and puts it into her piggy bank. WHen she fills up her piggy bank she can take half of the money and buy anything she wants with it (if she can afford it) :). She really enjoys doing the work and putting it in her piggy bank. She loves seeing the bank fill up with money. She does not like to spend it though.... good saver!

TNell - posted on 12/18/2008

By the way, I like the idea of taking out a household tax! That's great!

Amie - posted on 12/18/2008

Our daughter has two chores she has to do regardless of allowance, she cleans her room and vacuums the living room. Other than that she has extras that she picks up as well, from helping watch her siblings while I clean, to helping clean out the litter box, taking out the smaller garbage bags, taking laundry downstairs to the laundry room for us, etc. If she's helped out she gets her $10 a week paid every Saturday. Yes it seems like a lot but she manages her money well and really, there is little anymore kids can get for less now a days. When she wants a big toy or something special she saves her money. I have no idea where but she hides her purse until she has enough. lol. Other than that she budgets for special treats through out the week for herself and sometimes friends. =)

TNell - posted on 12/18/2008

Basically when our five year old wanted gum all the time and toys from the store, etc. we started a wage system. For every extra job performed, done right the first time and with a good attitude, she gets a quarter. As she gets older and more experienced at the different chores the "wages" will go up. She gets the choice to divide her money how she wants but she knows that anything that goes into savings will not be taken out before college. She is usually pretty good about taking out tithe and savings before she saves up for what she wants. When she thinks she has enough to buy something she wants we go to the store and price check it. I always include the tax in the cost and she has become proficient at this. The reason we handle her "allowance" this way is for many reasons. One of them is so that she gets a good work ethic. Another is to show her how we keep a budget as well and do our best not to go into debt. (She has only gotten a "loan" once from us.) Also, if something is important to her and she puts some sweat equity into it she will take care of it better. That's a few reasons. Oh, one more is that her allowance is dependant upon her, if she wants money for something she'll ask me what chores can be done. If it's not a huge deal she won't. There's no pressure on performance or anything and she learns how it is in the real world at the same time.

Kimberly - posted on 12/18/2008

Like Tonya, we don't tie the allowance to chores. They do some chores because they are part of the household, and they receive an allowance because they are part of the household.

Gretchen - posted on 12/18/2008

My 10 year old son just started getting an allowance. He gets $3 per week and only if he takes out the trash after school everyday. We are going to add a new chore every 3-6 months or so. I also take away if he doesn't put on his coat (zipped up), hat, and mittens when he goes outside. It's below zero and it's going to cost me a doctor visit if he does get sick.

Jenn - posted on 12/18/2008

I have three children and only one of them receives allowance. Their ages are seven, nine, and twelve. The oldest, my son, has been given many opportunities to receive an allowance but he refuses to do the work and fights us on it. My youngest does the same. My middle child though does her chores on a list I made and gets paid each Friday. She went from $3 to $5/week when she took over some of her brother's chores. I think it has really helped her to understand about money and how it doesn't just fall from the sky.

Laurie - posted on 12/18/2008

We have six children and don't give any of them an allowance. They have certain chores that are done every day because they are part of the family, and we all work to help each other. I keep a cork board with extra chores (like weeding the flowers, picking up the yard, cleaning fan blades, etc) written on index cards along with the money they are worth. If a child chooses to do the chore, they write their name and the date on the card (if it's not done within the time limit noted on the card, the chore is up for grabs by sibblings). When they finish, I check their work. If they did a good job, they get paid on Friday. If the work was not acceptable, they redo it for half the money. If it is still not done well (to their ability, of course), they must correct their work, now for free. If after a few days no one has snatched up a certain chore, I do it when I can.



When the ages are vastly different (I have a nine year old and a four year old), I color code the cards for age appropriate work options.



This system works well for us. They learn early that they help at home for no money because everyone in a family helps. They learn that earning money involves work, often hard work. They learn to budget and plan ahead because pay day is always Friday.



Good luck

Adrianne - posted on 12/18/2008

i started out with five dollars at the age of six and took him to a dollar store and showed him how much five dollers could get it works

Robin - posted on 12/18/2008

I started giving my son an allowance around 4. I gave him $2 week and I did up a scedule of chores to be done around the house and posted it on the fridge (small things like pick up his toys or keeping his room clean) and when he got older we would discuss what additional chores he could for more money. He's now 11 and makes $10 per week and his chores are keeping his room clean, taking out the recycling, doing his homework, making his bed and being a good boy. Sometimes if he needs extra money for stuff he'll negotiate on extra small jobs, like $5 to clean the car, or $5 to vacuum. Small jobs he can do occasionally for a one time bonus.

Tonya - posted on 12/18/2008

We have given our 4-year-old twin boys an allowance of $1 per week since they were 3 years old. We take out 5 cents for taxes (to contribute to "running of the household"), and require that they put part of their money into savings. (They determine how much.)



We do not tie the allowance to chores. They are expected to do certain things because they're part of the household, not because they're paid to do it. They can earn extra money by doing work they wouldn't normally do, however, such as shredding papers or cleaning the sink.



The allowance is basically so they can start learning the value of money, learn how to save and spend, and realize the impact of their financial decisions (e.g., buy a cheap toy, and it breaks).



Here is a great article on allowances for children: http://hffo.cuna.org/12433/article/107/h...