I grew up and had to learn a lot of tough lessons on my very own. I didn’t have a frugal person to help me out, so that’s why I think it’s important that I teach my children about the value of money. If you’re thinking about giving your kid an allowance, you should definitely keep some things in mind. I’m going to go over a list of things that you should think about and also discuss with your spouse.

#1. Does your kid need an allowance?

A lot of parents think that it’s a good idea to give their children an allowance, because they think that it will teach their kids excellent money management skills. However, if you’re just handing money over to your children on a regular basis, you could give them the idea that they are entitled to money and they won’t understand that they have to work for the money they receive. In other words, you may give them a sense of entitlement.  Before you decide on giving your child an allowance, you may want to think of ways your child could earn money.

#2. Think hard before making a decision.

It’s extremely important that you take things into consideration before giving your child an allowance. Are you sure you want to give your child an allowance, because it will be a long-term investment and if you ever just stop giving your child an allowance they could throw a huge fit. How much money will you give them? Will you ever give them a raise and if so; how often? What will you do if your child ever asks you for an advance on their allowance? These are all things you have to keep in mind.

#3. Should you make them earn their allowance?

This is another question that you should ask yourself. As we all know, as adults, you have to earn the money that you receive. It’s not just handed to you. Asking your kids to do chores in order to receive money could be a good idea, as that will give them an idea of how things are going to work when they get older. If you want money, you have to earn money. This is a basic principle that you could teach your children early on.

If you do decide to pay your children for chores, you should write the chores down on a list with a price beside of each chore. That way, if they refuse to do a chore, they don’t get the money. Also, you don’t want your child asking you how much money they’ll receive in return for everything they do. Also, you may want to consider offering incentives. For instance, if they get good grades, you could offer them a bonus. It’s important that you set up a list of chores, rules and incentives in advance. That way, you don’t have to worry about having any sort of problems or debates in the future.

What do you think about allowances and children? Are they good or bad? Leave your opinion in the comments section below.