Do’s
& Don’ts
of Giving Your Kids
an Allowance
By Tanni Haas, Ph.D.
Y
ou can teach your kids important money
management skills by giving them a regular
allowance. But how do you ensure that they end
up learning what you want them to learn? What are
the most important do’s and don’ts when it comes to
giving your kids an allowance?
Communicate Clear Expectations for
Spending, Saving, and Giving
It’s important to communicate clear expectations for what
your kids are supposed to do with their allowance. Experts
agree that if you want to teach your kids about the value
of money and also encourage them to become caring
human beings then require them to divide the allowance
into three parts: spending, saving, and giving. “This is an
excellent way to expose them to the three most important
things they can do with their money,” says Brad Munson, a
personal finance expert, “and it’s a lesson that can last
a lifetime.”
10 | V O L U S I A parent M A G A Z I N E
Come to a mutual agreement about how much money
they are allowed to spend, how much they are supposed
to save, and find a charity that they truly care about. As
Susan Borowski, the author of “Money Crashers” puts it,
having kids “choose the charity of their choice will make
them more likely to set aside the money. Just like we give
to charities that matter to us, children also need to give to
a charity that matters to them, or they won’t be motivated
to do it.”