When & How much allowance should you give your child?

Allowance should be determined based on the child's age and their expenses.

1. Start giving allowance when your child is ready to understand it, typically around 6-7 years old.

2. Set a budget for the allowance that is sustainable for you and the child, and stick to it.

3. Take into account the child's age, maturity level, financial responsibilities, and extracurricular activities while deciding on the amount.

4. Encourage your child to save a portion of their allowance for long-term goals such as buying a toy or saving up for college.

5. Use allowance as an opportunity to teach financial literacy and responsibility by discussing budgeting, savings, and spending wisely.

6. Avoid linking allowances to chores, as it can reduce intrinsic motivation and teach children that they should only work for money.

7. Adjust the allowance amount as the child's financial responsibilities and activities grow, while also emphasizing the importance of budgeting and saving.

Every family and each child is unique, therefore, consider what works best for you and your child.