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Tools To Help Teach
Kids About Money
Allowance
Until your kids are old enough to get a part-time
job, giving them an allowance is one of the best
ways to get money in their hands. This allows
them the opportunity to "practice" money.
Practicing money involves learning how to budget,
set personal financial goals, spend wisely, and
invest.
How much?
A good rule of thumb for how much allowance a child
should receive per week is half their age. So
following this rule, if you have a seven-year-old,
she would receive $3.50 weekly allowance.
Using this as a starting point, there are other
things to consider as well such as what your budget
can afford and your expectations for how the
allowance is to be used. In other words, does
your child need to pull out a certain amount for
tithing or long-term savings? Will he be
paying for school lunches? Once these are
decided, adjust the allowance accordingly.
The following table gives a general outline of some
possible expenses your child should become
responsible for.
|
6-8 year olds |
9-12
year olds |
13+
year olds |
- bubble gum/candy
- trading cards
- extra
toys/stuffed animals
|
- all of the
previous expenses plus...
- movies with
friends
- video
games/CDs/itunes
|
- all of the
previous expenses plus...
- cell phone bill
- toiletries/hair
supplies
- entertainment
- gifts
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Allowance Contract
Partially excerpted from the book,
Raised for
Richness, by Karyn Hodgens |
