- allowance is not payment for chores (kids should be helping out around the house as part of the family)
- make a list of items that the kids are responsible to pay for out of allowance (its not just for candy or toys of their choosing)
- allowance should be given on a regular basis, usually weekly
- if allowance is $5, give five $1 bills and encourage saving one of the $1's (more on setting up a savings account in the eBook)
- remember the goal behind an allowance is learning money management and the value of money
As kids get older, teach them to keep good records of how much money they have made, how much they have left, where the difference went.
Keep an eye out for teachable moments.