Got a question about kids and money or family finances? Here are some of the most frequently asked questions we hear from our families.
Allowances and Chores
- Should I give my kid an allowance?
An allowance can be an excellent tool for teaching kids good money habits as long as it’s defined and delivered thoughtfully. Read more here and consider using a budget-based allowance.
- What’s the right age to start an allowance?
As soon as your kid starts asking you for stuff at the check-out stand. Read more here. A Cambridge Study found that money habits are formed by age 7, so it’s hard to start too early. Don’t worry if your kid is older though. It’s never too late for kids (or parents) to start learning better money habits.
- Is an allowance appropriate for my teen or young adult?
An allowance can be appropriate for anyone who is still semi-dependent for legitimate reasons. Read more here. Consider using an allowance to put your teen in charge of a fixed budget for a specific area of spending like clothing. Read more about the technique here.
- What’s the right allowance amount?
What do you expect your kid to purchase and how often? There’s your answer! Treat an allowance like a budget. Read more here. Got a teen? Read more here
- Should an allowance be tied to chores?
That’s a tricky one. On the one hand, money should’t be required to motivate your kid to help out around the house. Read more here. On the other hand, it’s important for kids to make the explicit connection between money and work. See more here. It doesn’t have to be either-or though. I’ve always liked the hybrid approach of unpaid expected chores plus a budget-based allowance plus the opportunity for paid odd-jobs described here.
- What if my kid is blowing off chores?
You’ll find one technique for creating chore-shirking consequences here.
- Where can I find some good ideas for chore charts?
You can find over a 100 neat ideas on our Creative Chore Charts Pinterest board.
Cash Versus Cards
- Should I use cash or cards to teach my kids about money?
Cash and coins a great place to start, but you’ll want to educate your kids about how to use cards and electronic payment methods too. After all, that’s the world they’ll be living in. More on that here. And you’ll find 6 good reasons why you don’t want to give cash to your teens here.
- Where can I find more articles on giving my kids and teens a financial education?
Check out FamilyFinanceFavs.com. You’ll find a steady stream of fresh, short, actionable tips.
- Where can I watch short videos on giving my kids and teens a financial education?
Check out the Micro Money Messages series on the FamZoo YouTube channel. Each video covers an actionable tip in under 2 minutes.