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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