How much allowance should my kids get?

Many families give an amount, starting in kindergarten or first grade, based on their child’s age — for example, $1 a week for each year, so a 12-year-old would get $12 a week. You may want to ask around the neighborhood to find the going rate where you live.

Also consider whether you want to tie the allowance to chores. One school of thought holds that making an allowance contingent on completing chores can teach the value of working for income. Other families believe that chores and allowances should be kept separate. They maintain that chores teach responsibility as a member of the family team, while receiving an allowance conveys lessons about budgeting, saving, and investing.

The goal of an allowance—in my mind—is two-fold. First, it reinforces the lesson to kids that all money—not just yours but theirs as well—is limited and they will be best off if they learn to put a little thought into how they use it. And second, but no less important (if you’ve ever walked through a store with your child, I think you’ll agree), it is your escape from the “I wannas.” Once you give an allowance, you can tell your children as you head to the store to bring their own money if they want to buy anything. When they ask for this or that, you can say, “If you want it, you can buy it with your own money.” Believe me, their money is much more precious than your money. They will think long and hard. And as long as you resist the urge to dig into your own stash, the “I wannas” will begin to disappear. Here’s how to make my allowance system work for you:

Start when school starts. Kindergarten or first grade is the right time to start an allowance. By this time, your child may have a school store to visit where he or she can buy pencils or other supplies. If not, chances are he or she will have plenty of exposure—through you—to other places to shop. Grocery stores, drug stores, dollar stores…all are full of things your child will be able to afford.

Here’s where you likely wonder: “Should I tie the allowance to good grades or doing chores?” My feeling is no for two reasons. One, I believe it’s the child’s responsibility to do his or her best in school and to help around the house. School is their job just like work or running a household (or both) is yours. And two, if you make one contingent on the other, you’re taking the chance that your child will choose to fore go the cash in favor of not emptying the dishwasher or walking the dog. And you want them to have the money so that they’ll learn how to manage it.

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