Today’s fantastic family finance article is:
Parents often wonder: “What’s the right amount of allowance for my youngster?”
The answer is: any amount that forces the child to make choices.
Want versus need.
Near term versus long term.
Status versus substance.
Fleeting versus enduring.
If an allowance is so plentiful that a child can routinely choose A and B, it’s too big.
If an allowance is so meager that a child never gets to choose between A or B, it’s too small.
If a child has to regularly struggle between choosing A versus B, it’s just right.
The key concepts here: choice, ownership, trade-offs.
You’ll know it when you see it. Adjust your allowance accordingly.
Get tomorrow’s tip here.