Hey kids and parents, are you ready to talk about one of the most exciting topics out there? That's right, money! Specifically, allowance schedules per age. We know that money can be confusing, but don't worry, we're here to help you navigate it all.
Kids and Money: Why Giving an Allowance is Important
Giving your child an allowance is a great way to start teaching them about money. It helps them learn about saving, spending, and budgeting. An allowance can also teach kids financial responsibility and independence, as they learn to manage their own money.
Allowance for Kids: How Much Should You Give?
The amount of allowance you give depends on a few factors, like your family's financial situation and your child's age. A good rule of thumb is to give $1 per week for each year of your child's age. So, a 7-year-old would get $7 per week, while a 12-year-old would get $12 per week.
Age-Based Allowance Schedule
So, what's the Right Amount for Your Child? Let's break down the recommended allowance by age group:
For kids aged 7-9, $5-$10 per week is a good starting point. They can use their allowance to buy small toys, books, or snacks. You can also encourage them to save up for bigger purchases.
For kids aged 10-12, the allowance should increase to $10-$15 per week. They may start to have more expensive interests, like video games or sports equipment. You can also introduce the idea of saving for long-term goals, like a family vacation or a new bike.
For kids aged 13-15, the allowance should be $15-$20 per week. At this age, they may be more interested in hanging out with friends or going to the movies, which can be costly. Encourage them to prioritize their spending and save up for bigger purchases, like a car or college.
For teenagers aged 16-17, the allowance can increase to $20-$30 per week. They may start to have part-time jobs or be preparing for college. This is a great time to introduce them to concepts like budgeting and saving for the future.
Teaching Kids About Money: Using Allowance as a Teaching Tool
An allowance can be a powerful tool for teaching kids about money. Here are a few tips:
Encourage your child to save part of their allowance every week. You can even set up a savings account for them to deposit their money into. This will teach them the value of delayed gratification and help them develop a savings habit.
Help your child set goals for their money. Maybe they want to save up for a new toy or game, or they have a long-term goal like buying a car or paying for college. Setting goals will help them stay motivated and focused.
Talk About Spending Priorities
Encourage your child to think about their spending priorities. Do they want to spend their money on something small now, or save up for something bigger later? Helping them make these decisions will teach them about trade-offs and opportunity costs, which are important financial concepts that they will encounter throughout their life. Encourage them to think about what they truly want to spend their money on and whether it's worth sacrificing other purchases. As they grow older and start earning more money, these skills will become even more crucial for them to master. By allowing them to make choices and experience the consequences, they will learn to become financially responsible individuals who can make informed decisions about their money.