Giving your kids an allowance is a great way to teach them about being financially responsible and how to save for the future.
There are two main schools of thought about giving an allowance to kids… they have to work for their allowance (chores) or an allowance is given without any stipulations, but extra money must be earned.
Some argue that by making your kids do daily chores in order to receive their allowance, you are teaching them that one must work for their money.
Others will say that an allowance should be given without preconditions, and chores should be done because being part of a family requires it.
No matter what you believe the reason for an allowance is, the question often arises “what is an appropriate allowance for my kids?”
Some parents subscribe to the “$1.00 per year of age” rule. If your kid is 9, they would get $9.00 a week… 13, $13.00 a week, and so on.
About.com has a neat “Allowance Calculator” to help you figure out what your kids allowance should be.
According to mint.com, the average American family pays 50 cents per week for each year of a child’s age.
There is no doubt however, that the amount of allowance you will pay your children depends on your financial situation and your child’s age.
No matter the dollar amount you decide to give as an allowance, it is important that you teach your kids the importance of being responsible with their money and that putting a percentage of their allowance into savings is of the utmost importance.
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