A solid rule of thumb is $1 for each year. So, your five-year-old gets $5/week, at six years old they get $6/week, and so on. Be consistent. If you are planning to give your child a set amount of money each week, make sure you give it to them.
Forget what you got as a kid—that's out of date. Today, a key rule of thumb in setting allowances is paying a dollar a year: Pay $1 for each year of your child's age. Under this scenario, your 8-year-old would get $8, while your 12-year-old would receive $12.
Using an allowance as an incentive motivates kids to get their chores done. If you use an allowance to reward your kids for good grades, it could help them get into a better college or even receive scholarships.
"While there might be some general rules of thumb, it's up to your family to decide what's best." Many families like to use a formula corresponding to age, such as 50 cents or a dollar per week for each year of a child's life ($3.50 or $7 for a 7-year-old, $4 or $8 for an 8-year-old).
So how much allowance should you give? Levine recommends 50 cents to a dollar for every year of age, on a weekly basis. For example, a 10 year old would receive $5 to $10 per week. As your child grows, so should his responsibility for his own discretionary spending.
In conclusion: Give your child an allowance, it's part of the family's contribution TO him. AND give your kids chores it's part of his contribution TO the family. But don't give your kids an allowance BECAUSE they've earned it with their chores. Kids “earn” allowance just for being in the family, for being themselves.
In fact, age 8 is so tough that the majority of the 2,000 parents who responded to the survey agreed that it was the hardest year, while age 6 was better than expected and age 7 produced the most intense tantrums.
On average, the typical 4 to 14-year-old earns $8.91 in allowance per week or $463 per year. That amount includes both allowance and cash gifts received for birthdays and holidays. When it comes to allowance earnings, however, kids aren't getting the same thing across the board.
Even better, how many teenagers do you know that are actually saving money! While there may be some, they are few and far between. In short, a teenager should try and save $2000 a year from ages 15-20. Having $10,000 set aside at age 20 is a great foundation for any teenager to start their next phase of life with.
For 12-to 17-year-olds, the average is $10 to $19 a week, and around 15 percent of 12- to 17-year-olds received $20 to $49 weekly. (Notably, the study found that fewer than 60 percent of children ages 6 to 17 get any allowance).”
Pocket money basics
Giving pocket money to children as young as four or five years helps them start learning about the value of money and money management. For example, when children get pocket money, they have to make choices about spending or saving.
Experts will tell you that giving an allowance is a good idea. ... When an allowance is tied to chores, a kid is, in a sense, being “paid” for doing housework. In most cases, if he refuses to do his chores, he won't get his allowance. When an allowance is unconditional, kids receive the money no matter what.
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