Kids' Allowance 101 | Teach Kids Money TV

When it comes to allowance, there is no one-fit-all approach. Design an allowance approach that works for your family.

Here is what you should consider:

1️⃣ Chore-based allowance:
This approach teaches kids to develop strong work habits and avoid entitlement. Children only receive a payment if they complete the assigned chores.

2️⃣ Non-chore-based allowance:
With this method, parents believe that children should contribute to the household, regardless of whether or not they receive the allowance.

They reason that no one will pay their child to make their bed, take out garbage, etc. when they are adults.

If kids are misbehaving, parents still provide an allowance because the allowance is a teaching tool, but will take away privileges like play dates or screen time if chores are not completed.

3️⃣ Hybrid method:
This approach is a mix of the first two methods. Children must complete certain chores as contributing members of the family, but they also have the opportunity to earn extra money by completing tasks that parents would typically pay someone else to do.

4️⃣ No allowance:
Parents who choose not to give allowance make sure that they lead by example and demonstrate excellent money management skills to their children.

Also do not forget to consider:

1️⃣ How much allowance you will give?

2️⃣ How often will you give it? Weekly, Bi-weekly, etc.

3️⃣ Will you have rules as to what needs to be done with allowance (i.e. portion allocated to savings, investing, donating, and spending)?

4️⃣ When will you stop giving allowance (i.e. when your child gets a PT job)?

5️⃣ Will you give additional allowance when you go on vacation for souvenirs, birthdays, etc.?

Let me know how you do allowance in your house. 👇

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[arrianamoo]

I didn't know there would be so many ways to give allowance. I grew up with no. 2 type.