Setting Up An Allowance

Your financial situation is unique, and your kids are unique – this is why there’s no one-size-fits-all solution for giving your kids an allowance as they grow up.

Whether you decide you want to reward your child for completing chores, or if you want to simply provide them some money to begin their financial literacy journey, we have a few simple tips to make sure the allowance method you choose remains consistent.

Set clear rules and boundaries

If you expect your child to complete a chore to earn their allowance, be clear on your expectations. Make sure they know the task and how much they can expect by completing it. If they are earning a consistent allowance without the need to complete chores, make sure you clearly communicate how much they can expect per week or per month.

Determine financial responsibilities

Earning money is fun for kids, but they need to know if they’re expected to pay for certain items. Clothing, entertainment, eating out with friends - these are all examples of what kids can expect to pay for with their new allowance. This can teach them valuable lessons about maintaining a budget and give them responsibility over their spending habits.

Don’t be scared to teach your kids to save

It’s ok to be upfront with your kids about how much money they have in the bank and what that is expected to be used for. Upfront and honest conversations about how they can use their money most responsibly can lead to better financial habits in the future.

Allowances can be an awesome way to teach your kids how to spend wisely, save, and be financially healthy from a young age. A great program that your kids can learn to save and have fun at the same time is our T-Savers program! If you think your kids are ready to start saving, sign them up! Learn More