Do You Do Allowance?

I've written about allowance on many websites over the years. Because I have five kids, the topic is always relevant. We start handing out allowance as soon as the kids are old enough to contribute around the house and to understand the value of the dollar. For the much younger kids, this can be a frustrating process; teaching them to help properly takes patience, and many dollars end up in their pants pockets and through the dryer before they "get" what money is.

I think one of the most important parts of practicing the allowance process is education. Setting aside money to save, spend, and give starts at a very early age, and my kids enjoy being involved in the decision-making process of how these categories are spent. We have reviewed several products over the years designed to reinforce our values and the teaching that goes on throughout childhood. Thanks to my recent partnership with Kidworth, I will have another valuable tool in my arsenal.

I will be doing a full review of the Kidworth website soon, but in the meantime, I'd love to know what you are doing with regards to allowance in your home.  You can start by answering these questions:
  • Do you give allowance for doing chores? Or do you feel it should be given freely?
  • Have you ever withheld allowance as a punishment or consequence for not pitching in?
  • Is allowance an effective tool for motivating your child?
  • At what age should allowance begin?
  • Did you receive allowance as a child?
As you can see, the topic of allowance is not a simple one. How you decide to handle the issue will depend on several factors, including your views, your financial situation, and maturity of your child. As we look ahead to the holiday season, you may find that you would like some expert advice and resources to help ensure allowance is used effectively in your home. We hope to help fill the need in the coming weeks with tips and advice from parents who have been there!

Disclosure: This post was sponsored by Kidworth, a free service for parents to help teach children money basics -- like allowance!