An allowance is a great way to encourage young family members to become more helpful, responsible, and money savvy. However, making an allowance plan work can be a challenge.
Payment for Services
An employer never says on payday, "Well, let’s see what has been accomplished and how much payment is deserved." Instead, the amount is agreed upon in advance at hire.
So when hiring children and starting an allowance program, parents should agree on the amount of payment and responsibilities involved beforehand. Make a list to help everyone know what is to be expected. Approach the family household employees with a hiring and training session complete with handshakes and smiles.
Allowance Based on Child’s Age and Ability
A very small amount of allowance may be effective for a young child to understand that the coins collected for treats comes from helping an adult tidy up. An older child or a teenager may require more money.
As children mature and their abilities improve, the amount of allowance can vary a great deal. Some will mow yards and groom pets with amazing precision while others will barely find the time to empty the dishwasher. Yet all children deserve the chance to learn how to care for a home and work or their earnings.
Parents can set the allowance amount based on performance and agree ahead of time. Be prepared to change the agreement as the responsibilities increase. With more responsibility and more cash, children should also be provided more instructions on how to manage their hard earned allowance.
Get Ready for Pay Day
Make sure the allowance pay day corresponds to the grownup payday. Be sure to pay for services rendered. Whether it’s once a week, once every two weeks, or once a month, knowing that payday is coming helps keep everyone motivated.
What if Children Don’t do Their Part to Earn Their Money?
What if kids don’t do their work to and have not “earned” their allowance? Parents can re-evaluate their schedule. If a parent is part of a busy modern family, a part time allowance plan might be more affective, with an abbreviated list of household chores. Instead of trying to list the largest amount of work possible to gain the largest amount of allowance money, try making a list for a part time allowance for a part time “employee”.
The list may have a smaller number of duties with a part time amount of allowance, making the list actually possible to complete in the time available to the child as Mom or Dad helps them to balance school, sports, family, and friends. Extra money may be earned during holidays from school, weekends, or during times of great motivation.
Small Amounts of Money Add Up
A troubled economy makes no difference on whether the values of money management and good work ethics should be taught to children and teens. Allow the child to make mistakes and learn how to use his or her money in the smartest ways possible. Parents can improve the functioning of their home and family, while improving the self-esteem of the children by setting up their allowance program today.
Just like every bit of work done around the home keeps it running smoothly, every little bit of allowance earned adds up, and that is the important message.
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Angela Grogan-Henehan - Angela Grogan-Henehan
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