| One of the most important lessons that a child | | | | There are a few considerations to make. One is |
| can learn, is how to handle money (Unfortunately, | | | | the allowance amount that you can afford to pay. |
| many of us as adults haven't quite mastered it). | | | | Another one is how much you can trust your |
| One of the most effective ways your son or | | | | child to manage. |
| daughter can learn this crucial lesson, is by earning | | | | 4. Consider periodic increases. |
| an allowance. But there's more to it than just | | | | Just as we adults are evaluated before receiving |
| giving your kids some money for doing some | | | | pay raises, from time to time you should consider |
| chores around the house. Here are some tips to | | | | increasing your child's allowance. This will keep him |
| make the process as rewarding as possible for | | | | or her motivated to keep doing their chores on a |
| them and you: | | | | regular basis. While the increase doesn't have to |
| 1. Make a chart and post it. | | | | be particularly huge, it should be large enough to |
| This makes it easy to chart your child's tasks. It | | | | keep your child challenged. |
| should contain the chores that your son or | | | | 5. Talk to your child about budgeting his or her |
| daughter must do, and the days of the week. | | | | allowance. |
| Then they can simply check off each chore once | | | | It's important that your child understand that the |
| they've completed it. Post the chart in a place | | | | money he earned is his. However, this is also an |
| that's easily accessible, such as a refrigerator. Not | | | | excellent time to give your son or daughter some |
| only will this help your child to keep track of his or | | | | guidance about how to budget the allowance. It's |
| her chores, but it will also serve as a daily | | | | likely that their inclination will be to spend it all on |
| reminder that it's time to take out the garbage, | | | | candy or toys, so this is an excellent time to |
| mow the lawn, and so on. | | | | teach how to budget the money wisely. You |
| 2. Make the expectations and pay periods clear. | | | | could help them open up a savings account at the |
| It's important that your child knows exactly which | | | | bank, and automatically deposit a certain |
| chores he or she is required to do-and what that | | | | percentage each week. |
| involves. For example, "walking the dog" probably | | | | 6. Play a board game that includes play money. |
| doesn't involve walking Fido down to the end of | | | | This will help to reinforce the lessons you're |
| the driveway, and then back. | | | | teaching your child, through an allowance. Such |
| Also, it's important to set an exact day of the | | | | games can help your child to practice counting |
| week for receiving the allowance. Just as we | | | | money, buying and selling wisely, and bargaining. |
| adults dislike receiving late payments, make sure | | | | Although it's important to teach your kid the |
| that you stick to whatever payment schedule | | | | difference between play money and the real thing. |
| you set. It's not easy keeping your child | | | | Learning how to earn and spend money are |
| motivated to do chores, if you don't keep your | | | | valuable lessons in life. You can starting teaching |
| end of the bargain. | | | | them to your child, through an allowance. |
| 3. Make the allowance amount reasonable. | | | | |