Thursday, September 07, 2006

A child's allowance: How much and when?

Janet Bodnar @ Kiplinger's writes about how she's big proponent on giving children an allowance and asks, how much and when? She points out that certain experts say that you should start to teach your children about managing money around the age of 3 or 4. Having three children of her own, she feels that too young.

"I believe in keeping kids young as long as possible and not pushing them into things they're not ready for. And most pre-schoolers are too young to understand the abstract idea of money. They'll choose a nickel over a dime because it's bigger, and they have no idea how far $1 will go."

She believes at ages 6 and 7, children are more mature and will most likely be learning about it in school. She also believes that buying gifts for their friends at age 7 or so is too young to be making decisions about things like that.

"they should be getting a seasonal clothing allowance by age 9. Kids should definitely take on those responsibilities, but I'd recommend waiting until middle school for the gifts and high school for the clothing allowance."

Do you have children? How much and when did you start with the allowance system?


Anonymous said...

We budget 10 dollars a week for our daughter to spend on toys, snacks, etc...
So, she gets 10 chores, at 1 dollar a piece... and then she can spend it like she likes...

Anonymous said...

she's almost 7

John said...

That's a well paid kid! She must have a good union ;)