6 Year Old Allowance

I went to a seminar once and learned how to separate and budget. I really liked one of the ideas they gave on how to teach kids about money (which is a simplified version). Basically you can set aside 3 jars: play money, gift money, and savings - then each time you give an allowance for doing chores or getting good grades you can separate the money in the jars in a percentage that works for you. Like if you have $5: she can put $2 in savings to go in her bank account, $1.50 in gift account so she can buy her friends a gift on their b-day or parents for christmas/mother's day etc., and the last $1.50 can go into play money to buy something for herself once she has enough.
It's just an idea, but I liked it as a way to teach kids about how to save and use money.

Suze Orman had great advice. She said give the child 1o cents per minute for their time they take to do a task. I also have a six year old son and I have decided to give him 5 cents per minute. That way, the more he helps, the more he gets. I have him do things that really help me around the house(sorting his toys, cleaning his room). He also takes out the recycling and cleans the toys downstairs for free. Anything that will really help you can be a chore.
Good luck.
P.,
Mom of 4.

Your daughter is definitely old enough, my children started learning at the age of four.

My daughter gets paid 50 cents a day. She has a chart. If she does everything on the chart she gets paid the fully 50. For everything she doesn't do, I deduct 5 cents. Whining and throwing temper tantrums are also deductions. I make her figure out her own much money she earned. She also has a money record (a check registry). I make her add and subtract her own money (with help). She doesn't do it, she doesn't get the money. To help teach her about making change, I mix up the type of coins I pay her with.

She also enjoys playing the change game. two players, 1 die, 3 dollar bills, and whatever amount of each coin you think is good. the point of the game is to change your coins for 2 dollars bills. roll the die, whatever it says the player takes in cents anyway they feel. 6 = 1 nickel 1 penny or 6 pennies. The trick is a player can only exchange 5 coins in a turn. player has 10 pennies can only get 1 nickel (5 pennies) and nothing else. a player with two nickels can get 1 dime. This way, the only way a player can get a dollar bill is by having 4 quarters.

We have similar easier games for learning nickels, dimes, and quarters.

This has been super helpful for our 4 year old daughter! She loves it and it helps us to know what/when to teach and when to give.

http://kids.daveramsey.com/

http://www.daveramsey.com/shop/Financial_Peace_Jr__P112C4...

I started giving my daughter an allowance this past summer because she kept asking for things at the store and really had no concept of spending and saving. She was also 6 years old. I give her $2 a week on Sunday. I don't make it dependant on chores or behavior. I believe that helping out around the house is part of being a family and doesn't get rewarded with pay. After all no one pays me to do the laundry! At first, of course, she spent her money on silly things like candy and little junky toys,but I kept my mouth shut. She soon realized that when she spent her money it was gone and she wasn't going to get any more until Sunday(I never cave and give it early). It has been a wonderful lesson for her and now she saves her money for several weeks to buy something bigger. She rarely asks me to buy her things because now she has her own money and I can say "maybe you can save up for that". She has also become more careful about how much she spends and compares prices on items. I think this is a great age to start an allowance and it doesn't have to be a lot of money. Just enough so they feel some power and control.

I've read that the going rate is $1 per year of age ($6 for a 6 year old) up to twice their age for the older kids ($34 for a 17 year old). We're planning on starting an allowance soon, and we're going to go with the $1 per year of age route.

I also have an almost 6 year old who I have started the same system as I had with my first now 8 year since she was 5. So far it has been working great! I did a little bit of research and accomodated to our family's style. Our allowances are not connected with chores because we believe that chores are just part of being a family member, (Mom and Dad do not get any money for cooking doing dishes, laundry,... at home). Our goal with allowance was to make sure they would understand that money comes and goes and we need to manage it in order to fullfill our obligations and to be able to have fun at the same time, reaching this balance poses a difficult task even for adults. We were also tired of nagging and saying no for their requests at every outing. First thing we read that made sense was to have enough money so they can save, some that they have to spend (ie. purchase something for someone) and have a little to spend anyway they want.
At 4 years of age we started them at $2 per week at that time they did not have to buy anything (they are still too egocentric to grasp and accept the concept of spending their money on someone else), only had to save half and the rest they could spend however they wanted.

At 5 years of age they got $3 per week and they had to save $1 and for Christmas and Birthdays buy something very small for Mom, Dad and sister. (traveling size items are great for this, usually Mom got a lotion, Dad got a tooth paste and sister a soap).

We add $1 every year and our 8 year old now gets $6 and she must save (wich she go really good at it!) to buy also a birthday gift for her sister and her grandma (who usually spends the holiday with us).

We do not take money out, if there is a need for consequences due to missbehavior, they will just lose priviledges. We do not get money deducted from our paychecks if we make a mistakes do we? We might end up missing a promotion or losing a job, but not part of our paychecks. This is about teaching children the value of money and how to manage it. Behavior should be a different issue.

The amount should vary according to what is expected of them in terms of spending obligations, $1 per year of age or half of that are good ideas to start.

This is a very involving process that in order to work it takes patience, time and devotion, but it is well worth it!
Good Luck :)

Hello!

I give my kids one dollar per year they are old - my 9 year old gets $9 and my 7 year old gets $7 every two weeks - they get paid on Daddy's payday. We dont really have to deal with the different amounts being unfair, because the older you are, the more responsibility you have. I saw Suze Orman on Oprah the other day and she recommended .20 per hour of work - it incorporates the minimum wage and I really like this idea too.

We do same as Kathy L, giving an allowance no matter what, expecting household help no matter what. If our daughter doesn't help around the house, she doesn't get to do fun things, and vice versa. We've also given her envelopes labeled Spend, Save, and Share, and she's responsible for how much she puts into each envelope. It's a learning process, and we're letting her learn as she goes.

We give our kids half their age in allowance (i.e. $4 for the 8 year old). If they don't do their job the first time we ask, it's a 25 cent deduction. If we end up doing their job, it's a dollar. The youngest can help with dishes, help with laundry, keep the backyard cleaned up of toys, etc. The olders help with sweeping, cleaning the table (wiping it down, throwing old papers and napkins away, etc.), taking out the trash, etc. Hope that helps!

What we've been doing for our son who is now 9 is using a "reward chart" in combination with allowance. He has some daily chores, taking out the trash, cleaning his room, setting the table for dinner but he also has "behaviors" on his chart as well (i.e. Being respectful, getting ready for bed on time etc.) These change according to what he is having difficulty with. Every night we go through the day and give one star for each accomplishment. Once he's received a certain amount of stars for the week he'll get his allowance. We give him $3.00 per week for a percentage of stars and $4.00 for a bigger percentage. If he doesn't meet his requirement of stars, then he doesn't get an allowance at all and he knows he did his chores for free. We also just recently got him an allowance card. It's basically a prepaid debit card through our bank that not only allows us to easily transfer money from our account to his but he always has access to his funds and is learning about budgeting his money.

They should by now, be learning about money at least in school. My daughter is the same age and they learned it in school since Kindergarten. She's in first grade now.

A good idea is, to get a bottle or bank... and whatever money or coins she is given or earns.. she can put it in there. There are "kids banks" that have a digital read out and tells the child how much money they have in the bank. You can find it on amazon.com

For us, since my daughter was 3-4 years old, we give her some coins or a couple dollars here and there... and then IF she wants something, she has to choose, and see if she has enough, and we "help" her by looking at the price tag versus how much cash she has... and then we problem solve it. But also by now, she knows her numbers and which is "bigger" or "less than." She has gotten very wise about making decisions this way. And, she is also a good "saver" and will choose to save her money too, instead of just spending everything. She will even save her "tooth fairy" money in her bank.

It's all about exposing them to it, and helping them "evaluate" it in reflection to how much money they have... and math skills, number skills, number recognition etc. That is the way my daughter's Teachers teach them too.

For "earning" money at home... we don't apply it to EVERY SINGLE CHORE she has in the house... that would be too overwhelming for such a young age. BUT, for certain things, like making her bed, picking up her clothes, helping to wipe the table after dinner... we give her a few coins from a container that we have. Or, we give her a dollar. If she is "naughty" or does not do something... we don't necessarily deduct it from what she earned... because she DID earn what she earned... but, if the transgression was "big" enough... then we might take back .50 cents. We put a flat rate limit on it.

But, we don't expect "perfection" in her everyday, every moment behavior. I feel that's too rigid. Main thing is she try "her best" and that is good enough.

It's up to you to decide "which" tasks will "earn" money for her... and which won't. It does not have to be "every little thing" that they do. But just choose a few manageable "chores" that is do-able for a child that age. It HAS to be age appropriate. Or, no one gets anything out of it.

When we go out, and if she asks to have something.. we tell her "well, do you have money in your wallet?" (we gave our girl her own wallet since about 3 years old). Then she will go and look and we have her count it. THEN, based on how much money she has, we let her buy something. If she wants something that is 1-2 dollars more than she has... I will put in that money for her. Its okay. But my daughter is always reasonable, and "spends" wisely. We just have always discussed things like this with her. And sometimes, I will just tell her "I don't have money today. Sorry we can't buy anything." And she understands.

We also teach her about how we get money... we work for it and have jobs etc. What is a bank machine? We explain that to her too. She knows, that money is not endless and that it can run out, and we have "bills" to pay. We also explain to her that things like leaving on the lights, or running the water too long "costs money." And she also learns about how to conserve energy in school too. SO, it is understandable for this age. But you have to explain it to them in everyday activities, and show them. Its all about exposing them to the concepts and in daily life.

Kids really benefit by learning it early.
Good luck, hope this helps,
Susan

Start out with .50 a day. Make her work for it. She has to put her clothes away, hang up her coat,jacket, or sweatshirt, set the table, clean off table, maybe feed the animal if you have one, pick up after herself, put her shoes away, etc. these are all simple things. you can set each job at .10 so if she doesn't do something take .10 away for the next day. Than as she gets the idea and you add jobs and add .10 or so, to her allowance. You be surprised at how much she feels like she is really helping out and getting something in return. It has worked with my children.

I would start a system where she gets maybe $3-5 per week maximum. I would show her how to do chores like set the table, feed/water the pets, clean her room, fold her laundry, etc. She would do the chores daily. You give her a smiley face for every chore done daily. If she has smiley faces for every day, then you give the whole allowance once per week. If not, no allowance. I would also start doing volunteer work with her or as a family in your community, so that she can appreciate the value of helping others. Best of luck to you.

If she is in school, I would say, "If you do all your work in school and do a good job cleaning up your toys and after yourself then you can have a dollar or .50 a week." It works for my son who just turned 7 in Oct.

My son gets $2 a week that we pay monthly. If he doesn't do so hot, we deduct 50 cents as needed. His chores are keeping his room clean, making bed, putting away clothes, setting the table, taking care of the dog (water and doo-doo), emptying small trash cans in house, taking in and out the trash cans to the curb.
We have 2 bank accounts for them, saving and fun money. The savings is for long term items (he's saving for a nintendo DS) and the fun money is used for souvenirs on vacation or miscellaneous items he really "needs." We go to the bank once a month to deposit at least 1/2 into savings and they choose how much to put in fun money.

We just started giving our 6 year old an allowance of $6/week = $1 for each year he is old. But he has certain weekly and daily chores he must do to earn it. For example, he has to put his dishes in the sink after meals/snacks and put his laundry away. Just to teach him responsibility and that you have to earn money, it isn't handed to you.

How much does lunch cost at school? Use that amount for a while as the weekly amount. Before you give her an allowance, practice values with her. We did that in my son's first grade math class and you'd be surprised how fast kids catch on to money even if math isn't their best subject. Start with five pennies, one nickel, ten pennies, one dime, two nickles, one dime, etc up to a dollar. When she has all that figured out, she will be far ahead in math. You will be teaching addition, subtraction and even multiplication (but you don't have to tell her). Allow her to spend it any way she wants, but if she runs out you have to remind her she needs to keep track of what she spent. A piggy bank is also a good way to explain how to save for something she really wants. When she gets older you can open one of those "free" children's accounts at a local bank. Tasks to earn EXTRA money are a great idea. Fifty cents for helping fold laundry and putting it away, feeding the dog all week, picking up her toys (without arguments), drying dishes, gathering dirty clothes, pulling weeds, taking out the trash (if not too much or dangerous), sort the laudry (while, hot, cold, colors, etc), lots of things you can think of that a child can help with. Even setting the table and helping cook (washing potatoes, salad greens, anything that doesn't require handling a knife yet). I like some of the other mothers' ideas too.

Hi K.,

I love this topic!! Here is how I do it. I pick a problem area. EX: My son Kinser used to throw huge tantrums about getting up and going to school. So that is his reward program for that behavoir. Good morning ='s $1.00. Pay day is on Friday. My other son has a different reward system. Still only $1.00 per day. so $5.00 per week. I only subtract the money for that particular infraction. So if they are in trouble for other stuff I don't deduct money I give a different consequence. It has been a wonderful program and they totally love it. Once we have mastered a problem area we go onto another one or issue a chore/responsibility. Good Luck!
Smiles,
S.

I followed a method of giving my son the dollar amount of his age (he's 8 now, so I give him $8.00). He has specific chores he needs to complete and then he receives his allowance. I don't withhold allowance for behavior issues and I do make sure he has done what is required. I have him save 10% of what he is paid and I do specify he is not to buy junk food. It seems to be working...Good luck!

I seem to have a different take on this than the other posters. I believe that as soon as they can start understanding rewards/punishments that you begin to implement a system. (not necessarily with cash) Everything is dependent on age and understanding. I have a friend that shared this great system with me that was in a box. I can't remember the entire thing but will try. It looked like a bill or mail box with different slots. She had chores laminated on cards. Every day of the week had three slots. So there was a morning slot an afternoon slot and an evening slot. The cards for the younger ones started with brushing teeth, putting pj's in laundry, making bed, cleaning up dishes from breakfast, etc. for the morning slot. The afternoon slot would have a daily chore that was age appropriate for the child. ie vacuuming, putting away dishes, cleaning up toys or treating your little sibling nicely during playtime. And then of course evening was picking up your room, brushing teeth, bedtime routine etc. Now, when the kids did a chore the laminated card would be put in the back slot for done. These are not taken away because of bad behavior, because the child did earn them. This system is completely reward based and has no bad behavior cards. You could implement them if you wanted to but be very careful as they may earn more of those that cancel out the good and have nothing at the end of the week/day to look forward to and then become very discouraged. At the end of the week, they would be counted up and the number of cards would have a value. The smaller kids value was not money but items or time with mom or dad. For example... one of the treat cards was a lollipop. Another was an ice cream out with dad. Painting for an hour with mom. 1 Special toy. 1 hour long trip to the park. You get the point. You could count up the cards daily or weekly, whatever works better for you child. If she doesn't get many cards then she doesn't get many treats. If she misses a card then you could add it to the next day or just skip it. As the children get older you retire some cards and make new ones that are age appropriate. The other thing that you upgrade are the rewards. As the child gets older.... the cards could have a money value. So.... at the end of the week each card equals 10 cents. If you have 10 cards a day that is a possibility of $5 at the end of the week. (taking Sat/Sun off) Everything can be adjusted. Kids don't always get money really quickly so starting with the tangible helps and then changing it to money later.
Ok, so how this helps with her always wanting things when you are out is to now ask her if she has earned any of the things that she is asking for. "Mommy, Mommy I want that little pony!!!, I want an ice cream...." "Did you earn a coupon for one?? Nope, well then you will need to work harder at home for that item."
Eventually you can then put a dollar figure to it and she has to earn enough money to buy the item. At 6 I do think that she is ready to learn about money, but you might start with the items for a couple of weeks first and then go to money so that she gets the point of "earning" to begin with.
If I have confused you, just pop me a personal note and I will try to explain it better.

My son just turned 6. We told him we'd give him a dollar a week for setting the table and picking up his toys and feeding his fish. The amount of money doesn't matter as much as the lesson they are learning about being responsible.

Do day by day allowence. When your girl wants a candy or toy or what ever teach her how to count $ vs. the price, teaching her to save for a larger toy or what not, saving to buy gifts for hollidays/birthdays is also helpful. Maybe $1.00 a day for what she does. Kids are good about dressing the trash can, putting away their own clothing, towels etc. they also enjoy vacuming (remember even if it's not the way you would, they are learning and trying.) You could deduct a quarter or so when the task isn't done. Just have fun, use your imagination.