Depending on the family’s situation, it is wise to determine a rough guide as to the amount of money that each child is allowed to earn. Some families set a fixed price for each chore and allow kids to choose which chores they’d like to do, while others use a fixed rate for each age, increasing in increments each year. You can also add to the system by suggesting that chores done without a reminder earn their full value, while chores that are only done after several reminders have a percentage of their monetary value deducted.
- What Experts Say About Allowances for Children
- Allowances for Children
- Should You Give Your Child an Allowance?
- Kids and Money: Allowances
- Children and Money Series: Allowances and Alternatives
- An Online Allowance Bank for Kids
- The Basics of Setting Up an Allowance
- Strategies for Kids’ Allowances
- When to Start Giving Kids an Allowance
- Financial Lessons for Kids
- Paying for Chores: How Much? (PDF)
- A Chore and Commission Chart Template
- Allowances Ideas, Bonuses, Fines and More
- Suggestions on Giving an Allowance
- Use Allowance to Teach Kids Money Management
- Teaching Your Children About Money
Other Ways for Kids to Earn Money
It is important to teach kids other methods of earning money to help them learn about entrepreneurship and to exercise their creativity and business skills. Apart from the age-old lemonade stand, explain to them that they can earn money by offering services to other people, such as mowing grass or babysitting for the neighbors. Alternatively, they could arrange a garage sale with friends (and some adult supervision!). Help them to brainstorm and then go through their ideas to give them some tips and pointers. Older children can be encouraged to get a part-time job at a local store or for a family member’s business. There are many government grants for young entrepreneurs and it’s never too early to start!
- Different Ways for Kids to Earn More Money
- A List of Summer Jobs for Kids
- Kids Money for Kids: Making Money
- Babysitting: The Basics
- Resources for Young Entrepreneurs
- How to Make Money During the Summer
- Interesting Ways for Kids to Earn Money
- How Kids Can Earn Money in Their Neighborhood
- Heather Learns About Earning
Help kids keep track of their money by setting up a money journal where they log their income, spending and savings. Buying them a piggy bank will help them feel in control of their finances and add to their sense of pride when they continually earn more money. Teach them to save up for items that they were planning on buying, especially those that count as splurges. These can include movie tickets, a new video game or toy and so on.
- Additional Resources on Allowances and Helping Kids with Spending
- Helping Kids Understand the Value of an Allowance
- What Should Kids Be Expected to Pay For?
- Talking to Your Kids About Money