When your kids become teenagers it starts to seem that nothing is ever easy. But they are your kids and you love them more than anything, even if they are currently wrapped in a cloud of hormone-induced angst. One of the many issues you’ll have to deal with is setting an allowance for your teen.
First of all, let me tell you that there is no standard amount of allowance. It’s true that surveys show the average rate is $30 a week, but every family is different and you need to make decisions based on your budget.
The following tips should help you make smart allowance-related decisions for your family.
#1: Understand Why You Are Giving This Allowance
Do you want your kid to learn how to manage money or is there something they need to buy every day (like school lunches)? Or do you want to teach your child the value of money and importance of work? Understanding your goals and the child’s needs is the first step to deciding what the right allowance size is.
#2: Teach Kids About Money
When you give kids an allowance, you also need to give them a crash course in budgeting and personal finance. Use apps and other helpful tools to teach your teen how to use money wisely and how to save. This way, they’ll be able to make more out of their allowance.
#3: Pay for the Right Kind of Chores
Never tie the allowance to regular chores because this sends a bad message. In essence, this means you are paying your teens for doing something that should be their responsibility as a part of the household. However, you can tie the allowance to chores that are outside their daily responsibilities, like washing the car or organizing stuff in the garage. Give kids an opportunity to earn more money when they need it.
Of course, the exact size of the allowance you can give your teen will mostly depend on your budget. However, use these pointers to help you make sure that your kids make the most out of it.