money talks

Teaching Through Allowance

At what age do most financial experts recommend giving children an allowance?

1. Age 2-3
2. Age 6-8
3. Age 12-14

“B” is the most common answer. Before you give an allowance, establish clear ground rules: How often will it be given? How much will you pay? Will the amount paid be tied to specific family chores? Encourage your child to set goals and save a certain amount. Young children’s goals can be simple. For example, they may be expected to save for toys or other purchases that cost more than a week’s allowance. The key is to teach them how to make informed decisions and delay gratification. That way, they’ll be better prepared to save for larger things down the road.