Tips for Allowance Parents have different philosophies on what works for allowance, and for good reason!
What works for one kid may not work for another.
We do, however, recommend the following as a start:
It's worthwhile to provide an allowance.
This helps your child understand the value of money, and empowers them to save up when they want something.
Calculate a fair amount.
Figure out which items you want to be responsible for (such as clothes), and what you want your child to spend their own money on (like toys). This is likely to change with age: there's a big difference between buying clothes for a six year old because they're necessary, and for a sixteen year old who wants name brand items!
Don't tie allowance directly to grades or chores.
Most experts feel it's best to keep allowance separate from grades. The idea is to show these responsibilities are a part of your standard expectations. However, you can decide to bump up the allowance for special chores they aren't expected to do.
Teach money management.
Luckily, this is something Virtual Piggy can help with! Our free service provides your child with many excellent tools to manage their money online.