Publication 06117 (2008)
Allowances and Alternatives
The life-long benefits of teaching children good money habits make it well worth the effort. Children who are not taught these lessons pay the consequences for a lifetime. It provides an overview for the four main ways children receive money (cash gifts, earned money, dole, and allowances) and the advantages/disadvantages of each system. If an allowance system is deemed best for their family, the easy-to-follow guidelines and sample forms will help parents ensure that the allowance experience is successful. This resource would be an invaluable tool for parents and would make a great “give away” for schools, parent educators, and other service providers.
Table of Contents
- Developing a Consistent Parental Approach
- Money Children Receive
- Cash Gifts
- The Dole System or the Allowance System?
- Earned Income Allowance
- Entitled Income Allowance
- Choosing an Allowance System
- Allowance Procedures
- When Do You Begin Giving Allowances?
- How Much Should the Allowance Be?
- How Often Should an Allowance Be Given?
- When Should an Allowance Be Increased?
- Allowance Contract
- Developing a Spending Plan
- Guidelines for an Allowance