Allowance- Summer is a great time to start!!!
Giving your child an allowance is a great tool to help teach financial responsibility and prepare them to deal with money in the real world. There are many questions around when, how much, and what are they meant to do with the money….. Here are some Moonjar answers:
Should I give my child an allowance?
It is a good idea and the amount does not matter! It allows them to learn firsthand how to manage money. They are forced to make choices about what is most important to them. With a Moonjar, they are making choices around not only how much to save and spend but also how they see themselves giving back to the community. The Share box is a wonderful way to help children become life long givers.
At what age should I start giving an allowance?
There is no best age. Consistency is key. If the goal is to allow some money management, we have to remember to give them the chance. Typically 6-8 years old is a great time to start and a time when the children will remind you!
How much money should I give?
One approach is to give your child one dollar for each year of their age, however, we stand by the idea that the amount is not as important as the regularity. If you give a large allowance, ask the child to participate in some purchasing. The responsibility and the ability to make mistakes are important pieces of allowance.
How often should I give the allowance?
We tried and failed with monthly. It seems that weekly is the way to go. We also asked the children to put envelopes on the bedroom doors so that we could be sure to remember and they could be sire to remind us when we still did not!
Should an allowance always be tied to chores?
This is the most common allowance question. It is entirely up to the family economy. Some families like to model pay for work. Others believe that money is responsibility and when you are part of the community you have the responsibility of chores and you have the responsibility of money management.