Give Your Kids Flying Lessons

Teaching your kids the essentials of money management will help them grow their own wings.

The goal of parenting is to help children to grow wings to eventually fly away. Building financial confidence in your children's lives is one important way that you can prepare them for the flight. Anutr Yossundara/Shutterstock

Kids of elementary school age are becoming aware of the real world around them. They are eager to learn and still believe everything that adults tell them. And they want their own money.

For all of those reasons, I suggest that now is the perfect time to start a simple allowance system. This will create wonderful opportunities for you to pass on your values as you closely guide your young children through simple lessons on giving, needs versus wants, and delaying gratification.

How Much?

So, how much allowance should a young child receive? The amount depends on your financial situation. Some families set allowance according to age—say, $1 for each year of age. This eliminates questions about when and how much to increase.

How Often?

At this age, kids do better with close supervision and short time frames, so receiving their allowance weekly is best.

Should It Be Tied to Chores?

Many experts say that allowance should absolutely be the payment that children receive for doing their chores and assigned jobs. No work, no pay.