Five Tips to Help Allowances Work for your Family

One of the best ways to help your children learn the value of a dollar is to make them work for it. This really helps to put a value on all the money that they spend. It also teaches your children the importance of hard work. This is one reason why it can be beneficial to set up allowance in conjunction with chores in the home. You can set up your system in numerous ways. Here are five suggestions that may work for you.

1) You may have a set amount of money you want to give your children each month. If this is the case you can have your children agree to set chores that they are in charge of completing in order to earn their allowance. These can be simple for younger children (picking up their room, making the bed) to more complex for older children (cleaning the bathroom, mowing the lawn).

2) If your children want to earn additional money you can have a list of additional chores that may need to be completed. You can list the amount each completed chore pays, and allow your children to work on those, as they need extra money. (In “Cheaper by the Dozen” they did this on a bid basis, where the lowest bid won. An interesting twist which may teach about competition and business.) Some examples of this may be cleaning the garage, the refrigerator, washing the car, cleaning the closets and so on.

3) You can also encourage your children to work outside the home. Once they are old enough a part-time job is a great way for your children to learn responsibility, time management and hard work. Mowing the lawn and babysitting are other options available to those not quite old enough to work outside the home.

4) You may want to limit the amount of toys and treats that you buy for your children. If they are responsible for purchasing some of their wants, then they will begin to equate the value of what they want with the work that they are doing.

5) You should also stress the importance of saving and giving away a portion of their earnings. You can do this in several ways, but it will help instill good financial habits in your children.

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