Providing your child with an allowance is one of the most basic issues you face when raising kids. Therefore it’s important to understand it and use it as a tool for your child to learn good money habits at an early age.
What is an Allowance?
An allowance is an amount of money that you give to a child to spend on whatever he or she chooses. It’s usually (but not always) a weekly amount of money earned through performing specific tasks around the house or at school.
If you’d like to give your kids an allowance, set your reasons for giving an allowance and consider the financial situation of your household. What specific financial responsibility skills do you want your kids to learn?