What kind of allowance should I give my kids?
By Karen Goodfriend
What kind of allowance should I give my kids? Unfortunately, there are no hard-and-fast rules about how much to give kids for an allowance. The best tactic is to start off with a small amount when your kids are young and they start asking for specific items, but make sure they show some concept and understanding of money first. Then, increase the allowance incrementally as they get older and show they can handle what you’re giving them.
One rule of thumb that some parents try: A dollar per year of age, per week (i.e., $5 for a 5-year-old, $10 for a 10-year-old and so on). You may also want to ask other parents what they do. Make sure that whatever number you come up with jibes with the types and amount of things you’re comfortable with your kids buying in an average week or month.
In addition to giving you kids an allowance, also talk with them about how to deal with it. The more you guide them, the better they’ll develop good spending (and saving) habits as they mature.