Allowances

'When is the right time for kids to start getting allowances?'

'How much is the right amount?'

'Should we give monthly or weekly allowances?'

'What to do when kids ask for more?'

'Should we help kids where and when to spend their allowance?'

'Can we use allowance as a tool of punishment?'

There are many more questions on this subject...  And there are many different approaches and answers.  I would like to point out to the fact that every child and every family is different. Therefore there's not just one answer that works for everyone!  

'When is the right time for kids to start getting allowances?'

Some experts say:

"Once your child shows both an interest in and an understanding of the concept of money - the fact that it can be exchanged for goods - they are ready to start learning the basics of money management. For some kids, this may be as young as three or four. "

'How much is the right amount?'

Although some say that a dollar for each year of age or the amount their friends are receiving is a good rule, I would recommend making your own decision based on your child's needs and your family's conditions.

Kids use money for spending, saving and sharing.  So having a little family meeting and discussing together how much your child needs and how much your family can afford giving could be the best answer.  It would not only help you to find the right amount but also would help your family come closer...

'Should we give monthly or weekly allowances?'

Time has a different meaning for young kids and therefore it would harder for them to manage their allowance for a month.  So scheduling the allowance should also be determined by the parents according to their child's age and needs.

'What to do when kids ask for more?'

Once the allowance is gone...  It is gone until next week/month...  until the next allowance!  This is very important for kids to learn how to manage their money.  It is actually the only way to learn, by mistakes...  

'Should we help kids where and when to spend their allowance?'

NO... The only way for kids to learn how to manage their money is through making mistakes.  So there are no restrictions for children on how to use their allowances.

'Can we use allowance as a tool of punishment?'

NO...  Allowances should never be earned (they shouldn't be tied to chores or rewards... Chores are children's fair shared amount of work) and should never be taken away.