Alright parents. Today we will be chatting all about the dos and don’ts of allowances. 

Giving your child an allowance can teach them how to save and spend responsibly. 

Before we get into the dos and don’ts, I want you to remember that there is no super-secret allowance recipe book. 

However, there are a handful of practices that can help make your allowance journey much easier. 

We hope you enjoy these tips. Let’s hop right in. 

Do…

Give Them Cash:

Credit cards can be confusing for many adults. Just imagine how confusing they can be for kids.

When you use a credit card, you see money being spent.

But when a child uses a credit card, most of them just see a piece of plastic.

Giving your child cash also makes it impossible for them to accidentally overspend. 

Think about it this way. When cash is gone, it’s gone. But credit cards are always there.

Set Rules and be Consistent: 

Some rules are worth breaking and tweaking in life. 

But allowances are not one of those rules. 

Here are a few popular allowance guidelines that can help you get started.

1) Figure out a Payment Schedule

Once a week is a good rule of thumb. As long as you are consistent, that’s all that matters. 

2) Decide how Much Their Allowance Will be

Please note, this number should increase as they get older, since they will have more household responsibilities.

3) Set Responsibilities

You and your child can sit down together and make a list of their daily and weekly chores to ensure everyone is on the same page. Allowances have to be earned. 

Encourage Saving, Spending and Giving:

Giving your child an allowance is one thing.

Teaching them how to save, spend and give is something else.

You are your child’s biggest role model. If they see you saving, spending and giving regularly, they likely will follow in your footsteps.

However, they have to understand where their money is going. 

Here’s an example. 

Encouraging your child to donate to charities is amazing. 

But you have to make sure they understand how donating works. 

Once they understand the basics, the two of you can sit down and do some research.  

You can give them recommendations, but don’t be afraid to let them take the lead and be independent. It is their money, and they should have a say in where it goes.

Don’t…

Don’t Pay Them too Much or too Little:

There is no set in stone allowance rulebook. The amount of money you give your child is up to you. However, you don’t want to give them too much or too little.

If you give them too little, it will make it very difficult for them to save, spend and donate. 

On another note, if you give them too much, they may not appreciate the value of a dollar. 

Don’t Pay in Advance or Late:

Children thrive on consistency. There will always be little things that pop up that may push back allowance day. But for the most part, it’s a good idea to keep things consistent.

Most employees get paid on a bi-weekly basis.

Setting up a weekly or bi-weekly allowance routine can help prepare them for the future. 

Don’t Judge Them:

In life, you live and you learn.

Children learn things every single day through trial and error. It’s only a matter of time until your child spends their entire weekly allowance on candy or purchases an incredibly overpriced toy.

Even though you may not agree with their purchases, you have to let them be independent and learn from their mistakes.

As time goes on, your child will realize which purchases are worth it and which are not. 

The sooner you get started, the faster they will learn.