BUSINESSWEEK ONLINE : SEPTEMBER 25, 2000 ISSUE
BUSINESSWEEK INVESTOR

How to Manage an Allowance


-- Think of an allowance as a tool to learn smart money management, not a petty-cash fund the child can fritter away.

-- To come up with a weekly amount, determine what items the allowance should pay for and about what they will cost. Add some money for savings, gifts, and charity.

-- Spell out in writing how the allowance is to be used. Pick a date to evaluate how things are working.

-- Pay on time. And don't link the allowance to chores. Kids need a dependable source of income to learn to budget.

-- Provide opportunities for earning extra money.

-- Don't come to the rescue. If the allowance was slated for new sneakers and gets blown on Pokemon cards, let the kid wear the old shoes until the cash hoard is replenished.



_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _


RELATED ITEMS
Explaining Money's Mysteries to Your Children

TABLE: Family Reading Matter

Teach Wisdom with $20 a Week

TABLE: How to Manage an Allowance



INTERACT
E-Mail to Business Week Online

 
Copyright 2000-2009, Bloomberg L.P.
Terms of Use   Privacy Notice