Regardless of what the experts say, the fact is that you know your child best and you are the best judge of what they need for an allowance in order to learn the financial concepts that you think are important as a parent. When deciding whether your eight year old should receive $3 per week or $20 per week, consider these factors in your decision.
- Look at what you expect them to purchase during the week. For example, if you expect their allowance money to cover school lunches as well as toys and other discretionary items, be sure that you provide enough for those needs. Also, be sure to adjust as the needs change. For example, if the price of school lunches changes, adjust the allowance amount to cover that.
- Consider your household finances, it makes no sense to offer your child an allowance that you simply cannot afford. If you want to pay your child $10 per week, but you cannot afford that in your budget, explain that to the child. This will help them appreciate that you also have to worry about money and that they will not always get everything they want. However, even if your budget is tight, try to provide something as an allowance (even if it is only a couple dollars), so that they can have money of their own to learn with.
