Pair the allowance with regular talks about how to use it. The Consumer Financial Protection Bureau reports research finding that an allowance on its own was an ineffective way to build money skills; the benefits came with guidance on saving and budgeting. It also says children as young as 5 can be ready to learn about saving and spending. ProfitDrawer's chore chart and allowance tracker splits money into spend, save and share.
A simple way to set it up:
- Decide the rules: a set weekly amount, pay for extra chores, or both, and what the child is expected to buy with it.
- Pay on the same day each week so it works like a paycheck.
- Split it into spend, save and share jars or envelopes.
- Set a small saving goal a child can see, such as a toy or game, and track it.
- Talk about plans. The CFPB says the most important part of an allowance is talking with you about plans for the money.
- Let them choose, and sometimes make a mistake with a small amount, then talk about what they would do next time.
ProfitDrawer printables for this:
- Chore chart and allowance tracker: weekly chore chart with pay per chore, a 13 week allowance tracker split into spend, save and share, and jars to color.
- Kids money worksheets: 30 worksheets for ages 6 to 10, from counting coins to saving for a goal.
- Kids savings goal tracker: 12 color-in trackers for a goal amount you choose.
All come in US Letter and A4.
Source: Here's why childhood is an important time to learn about money (Consumer Financial Protection Bureau) · Updated
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General information, not tax, legal or financial advice. Check the rules for your state and your situation.