Give Your Kids Flying Lessons

Use a four-jar money management system to help your children use their math skills while developing a habit of managing their money before they spend it. Pixel-Shot/Shutterstock

Kids of elementary school age are becoming aware of the real world around them. They are eager to learn and still believe everything 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 allowance should absolutely be the payment children receive for doing their chores and assigned jobs. No work, no pay.