These guidelines will help ensure that your child’s allowance helps teach good money management skills:
- Start with a small allowance and increase it as your child grows more responsible.
- Provide opportunities for your child to earn some extra money by doing jobs—like washing windows or shining shoes—not included in the allowance.
- Insist that children contribute to the family and do some chores they don’t get paid for.
- Be consistent with your allowance agreement. Don’t give in to arguments and tantrums when your children want something.
- Help children design a weekly budget and “set aside” money each week for items they want.
- In family meetings, share the lessons you’ve learned about money—without lecturing or moralizing.
- Don’t make threats or withhold allowance monies for not doing a chore. Use another consequence for the behavior.
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