Institute of Consumer
Financial Education
Institute of Consumer
Financial Education

Children and Money: Allowances or Work?

Birth to age eight

1) Assign basic household chores.Even 4 year olds can make his or her bed and pick up playthings.Have a list of "little jobs" that small hands cando to earn a dime or quarter. Provide a piggy bank for savingsand little sheets for easy record keeping.
2) Don't buy toys on demand. Help them tolook forward to birthdays and holidays for special items.
3) Let the child learn about actions and consequences.Having possessions brings responsibilities

Ages 8 to 12

4) Allow your child to begin makingmore decisions on their own. Encourage comparisonshopping for instance.
5) Give a specific allowance and stick to it - ornone at all. That's right! Some parents have foundthe best way to teach children to value money is to have themearn it.
6) Don't pay youngsters for doing regular chores.If you do, there may come a time when she or he might refuseyou because money isn't needed.

Ages 13 and Older

7) Be consistent. Continue tohave daily household chores. No child should be too busy topick up after her or himself and also help out around the house.
8) Help your child forget his or herself. Agreat family activity is donating time and/or funds to a worthycause.

Parents, educators, others interested, may receive by returnmail the Institute of Consumer Financial Education's ReadingList. It contains books, videos and course workbooksfor all ages PLUS there are also several guidebooks forparents and teachers too.