How Much Allowance Should a 6-Year-Old Get and What It Covers

When considering the amount of allowance a 6-year-old child should receive, it's important to think beyond just giving them money for candy or small treats. Instead, it's a tool to help them learn the basics of money management, saving, and budgeting. Here, we explore how much allowance might be appropriate, how to use it, and what benefits your child can gain from this system.

Introduction to Allowance for 6-Year-Olds

At the young age of 6, a child is typically old enough to handle a small amount of money. A good starting point might be enough to buy candy bars or other small treats for a week. As they grow, their allowance can increase to allow them to buy more substantial items, like toys or save for a future need like school lunches or souvenirs.

Earn and Save: Budgeting for Future Wants

The idea behind allowances is to teach kids the value of saving and planning for the future. As your child progresses and begins to understand the concept of a piggy bank or a saving account, you can gradually increase their allowance to cover more significant expenses. By the time they reach 12-13, they should be able to handle their own expenses, such as school fees, sports costs, outings, and clothing.

Chores and Allowance: Responsibilities and Rewards

It's important to differentiate between regular chores and tasks for which they can earn extra money. Regular chores, like making the bed, cleaning their room, and doing other household tasks, are expected without pay as part of their responsible citizenship. However, earning extra money for significant chores like cleaning the garage or painting a room is a good way to teach them the value of hard work and increased effort.

Money Management Lessons from Personal Experience

From personal experience, giving an initial allowance of $5.00 a week and requiring them to keep their room tidy and collect laundry is a start. As they grow older, their responsibilities increase, and so should their allowance. For instance, by the time they are 10 or 12, their allowance should reflect their more substantial responsibilities, such as managing their own chores and paying for their own expenses.

Connecting Learning with Real-World Concepts

Introducing practical concepts like saving and spending is crucial. For example, explaining that buying expensive shoes might mean less spending at the movies or thrift store shirts can help them make informed decisions. Additionally, involving them in financial decisions, such as choosing how to spend their accumulated savings, can further enhance their understanding and appreciation for money.

Encouraging Positive Spending Habits

Parents often find themselves limiting how their kids spend their allowance on candy. Encouraging them to save and spend wisely is key. It's beneficial to suggest they save up for something more significant, like a toy or a book, rather than immediate gratification with small treats. Holding onto their allowance until they have enough to buy their desired item can teach them patience and the value of planning.

Creating a Bank Account and Incentives

Opening a bank account for your child can be an excellent way to teach them about saving and interest. Setting up a system where half of their allowance goes into a savings account can further reinforce the value of saving. Additionally, providing incentives for extra chores or for going above and beyond can encourage good behavior and a sense of responsibility.

Conclusion

Allowances at 6 years old are meant to be not just a source of entertainment but a tool for learning valuable life skills. By setting appropriate allowances, teaching them to save, and involving them in financial decision-making, your child can develop a strong foundation in money management. As they grow, their understanding and ability to handle money will expand, leading to a more responsible and informed generation.