Determining Allowances for Children

In a most interesting article in a periodical we receive quarterly, there was an article on allowances for children. The article was most interesting as it was a series of letters from parents on how they implement allowances for their children.

Teaching children the value of money, how to save money and how to use their discretionary money seems to have more importance and urgency today. Here are some of the ideas from parents on this subject:

When a child turns 7, his/her parents began giving her an allowance of $3 per week for performing a few household chores. They also gave them each 3 jars marked Spend, Save and Donate. Each week one dollar goes into each jar. These parents feel that this reinforces the value of saving a third of your income.

Another parent pays allowances based on age with a raise given every two years. Payment is not based on chores, which are expected to be done without pay. They encourage their children to tithe but it is not required. They want their children to learn about sharing and cheerful giving.

One family responded by saying that they pay allowance based on school grades. Expectations are more modest through the elementary years, however when the children start middle school they receive an increase in their allowance of $20 per week. The middle school child can lose a portion of that allowance if she/he doesn't keep up on their predetermined household chores. These parents expect grades of As and Bs. Any grade less than a B means that $5 a week is deducted until that grade turns into an A or B. Missing school assignments means no allowances for the week. These parents feel that it a good idea for children to know that this is what happens in the working world i.e the parents' employers tie their annual raise to their performance.

Another parent warns about leading children to believe that they are entitled to part of their parents' income. The carry-over could be that young people begin to think that the world, the government and even God owes them something! These parents believe that if allowances are given, they must be earned for duties performed satisfactorily. They believe it is a parent's responsibility to instill a work ethic and teach their children how to be part of the family team.

A family with children, ages 7 and 9, give each child a $5-week allowance. Each child has a ledger in which they record all income and expenses. Allowance is based on a "chore chart" that the parents create. This "chore chart" includes school homework and specific household chores each is responsibile for. The children are required to divide their money: 10% into the church offering plate; 50% into their savings accounts; 40% for each child's discretionary spending. The parents see that the children are learning valuable skills in their own responsibilities as well as learning the value of patience and planning the spending of their hard earned money.

WHAT DO YOU THINK ABOUT THESE IDEAS? How do/did determine

allowances for children? Given the critical financial situation we Americans and

America in...perhaps is indicative that parents/adults ought do a better job of

managing their incomes!

Determining ALLOWANCES for Children

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