Allow an Allowance
Sandra McKinnon, MS
Family Financial Education Specialist
you learn about managing money? Did you just pick it up along the
way? Did you learn all that you needed to know?
Wise: Helping Children Learn to Manage Money by Doris K. Walker,
Kansas State University Extension.
Children learn about money by watching others. What they
see and hear influences the values and attitudes they develop. Set a
good example for children. If you earn, spend and save wisely, your
children are more likely to be money smart as well. Children need to
be involved with money Ė in family discussions and decisions, and
through hands-on activities. Money concepts can be confusing so
adults should talk to children about family finances.
Just like when learning to ride a bike, exposing a child
to the idea isnít enough; they need opportunities to practice. Allow
Many experts agree, allowances should not be tied to
chores or given as a reward for good behavior, good grades or other
achievements. An allowance is a specific amount of money given to a
child on a regular basis. The allowance helps children learn how
much things cost and how to set goals and priorities.
The amount of an allowance should be reasonable
considering family circumstances, the age and ability of the child,
and what an allowance is to cover. Children at the age of 4 or 5 are
ready to begin learning how to manage money. Allowances are
generally used to cover spending, saving, and sharing plus gives
children some money to spend however they wish. Making mistakes is
part of learning, so donít hesitate to let children make choices
about how money is used. Donít bail them out though if they lose
their money or go on a spending spree.
Remember practice, patience and praise.