How to structure your child’s allowance

With such pleasant weather this past weekend, many children were out enjoying the sunshine and looking for odd jobs to perform in order to get paid a few dollars and start building their summer nest egg.

Whether your child is a 5-years-old who wants money to buy candy, or is a 17-year-old about to start university and needs money for books, it’s never too early or too late to teach them the value of a dollar.

Father Miser and I believe that it’s important to give your children responsibility at a young age. By requiring each child to contribute to the well-oiled machine that is your household, you empower them and reinforce their functional value in the family unit. Whether it’s getting your 3-year-old to bring plates and cutlery to the table before dinner, asking an older child to wash vegetables as you prepare a meal, or having your teenager mow the lawn on weekends, no contribution is too small. Every member should play a part in the operation of the family unit, so to better learn and appreciate what is needed for society to function.

It’s important to recognize that the children of today are the adults of tomorrow. If we want to teach them to be self-sufficient and responsible people, we must reinforce the behaviour and characteristics that are needed to achieve social and financial independence.  By handing out money whenever it is asked of you, you are simply encouraging a sense of entitlement.

I remember, at the age of 5, being asked to save up my own money (allowance I earned with tasks such as helping my mother take care of my little brother and such) so that I could buy a dress I saw in a store window. Although they could afford to buy that dress outright, my parents decided to teach me the value of money. Today, I am very grateful for that lesson.

Now a parent myself, I hope to teach my own children about fiscal responsibility and plan to separate chores into two categories:

1. What behaviour is expected as a part of the family unit;
2. What tasks are considered a “bonus” and will warrant financial reward.

When deciding on how to structure an allowance for your child, sit down with your partner and talk about the values you want to impart. What behaviour is expected (for example making the bed and bringing dishes to the counter after a meal) and what tasks are considered a bonus. If a child wants to make money, he or she should perform some sort of task that is not already in his or her realm of responsibility.

Here are some examples of bonus tasks your child can perform to earn money, depending on age:

• weed the garden (pay per weed pulled for best results)
• wash the car
• paint the garage doors, fence, or shutters
• clean all of the bathrooms in the house
• scrub tile grout with a toothbrush and baking soda paste
• return empty bottles to the liquor store (they can keep the money from the return itself, therefore not actually costing from your pocket)

The list of chores is endless. Simply make sure that the task you request is outside their normal everyday duties.  This sort of approach may seem strict to some, but it’s crucial to remind oneself that you are arming your children with a sense of responsibility that will empower them later in life. 

MM