Allowance: 15 Ways for Kids to Rock a Healthy Relationship with Money
Over the last few posts, we covered reasons and helpful basics on giving kids allowance and money. In our final post on this topic (for awhile anyway!), we wanted to give a few helpful tips to make the process smooth and steady so that you can stay consistent, organized and help your kids grow ever more confident and comfortable with managing their funds. Some of these recap what we’ve already mentioned, while others are logistical “tips” to stay on track!
Giving Kids an Allowance: Relation$hip Builders
- Give them an allowance ($1 per year)
- When they ask you for something simply reply, “Yes, did you bring your money?”
- Open up a bank account when they are old enough
- Give your tween / teen a bank / debit card and teach them online banking.
- Have your children help you balance your checkbook.
- Discuss purchases and ask questions about do you think it’s worth this amount? Get them thinking!
- Stay calm and collected if your child wants to buy an outrageous item.
- Encourage vs. lecturing or steering. For example, “Hey, in just a few weeks you’ll have enough if you decide you want it.” (vs. You don’t have enough money- remember you bought that toy and spent it all?).
- Talk to your children about what charities you give to or help them give to charity.
- Encourage selling their old toys or working “jobs” if they want to put more money in their wallet. Once they realize how much an extra $10 will help them, they get creative.
- Hold family meetings at the same time each week- be consistent!
- In order to stay on schedule, get 100 $1 bills, keep them in a family meeting box for “more convenient” handing out.
- Plan for trip ups- ask the kids to list things that might happen to derail family meetings/ $hand out (soccer games, parties, etc) and have a plan b – let them develop it!
- Let the kids choose where to keep their money “safe” – some might discover that trash bag was a bad idea- it’s ok.
- Don’t worry about it once it’s in their hands. Trust the learning
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I have a question. We used to give allowance, but it’s been about 6 months since we actually “paid up”. We want to start again. So now my questions begin.
Do I pay the “back allowance”? At what rate? We used to do 50 cents per year of age while you recommend double that. Do I pay the back allowance at the old rate then begin from this time forward with the new rate? Is it harmful to give them such a large amount of money all at once? I’m worried enough about how they’ll handle their money, never mind giving them half the year’s worth at one shot. What do you suggest?