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Allowance Procedures

Few children see an allowance as an educational tool. In order to be an effective teaching tool, allowances need to be a planned experience between the parent and child. It may be helpful for parents to discuss these questions when deciding about allowances for their children:

• How do/will I teach my children about money management?
• Did I receive an allowance as a child?
• If given an allowance, how was it given? Did I have to earn it or was it given to me without question?
• If I didn't receive an allowance, how was I taught about money?
• If I didn't receive an allowance, did I wish I had? Why or why not?
• Is there anything I would do differently than my parents in terms of using an allowance to teach my children about money?
• How will we, as parents, resolve differences about how to approach allowances with our children?
• How will my child learn that there are limits to income and that as an adult, one can't simply ask for more pay?