| Paying teens an allowance involves more than giving | | | | used to cover medical bills, school supplies, school |
| them money. When teens get an allowance they learn | | | | lunches, sports fees, major clothing purchases, car |
| about budgeting, short-term goals, and saving for the | | | | maintenance, gas, or birthday gifts. If the kids need |
| future. My husband and I are raising our twin | | | | extra money for birthday gifts they can ask for it. |
| grandchildren and we offered to pay them an | | | | 5. Spending habits. According to Bankrate.com, |
| allowance many times. The twins turned us down. But | | | | allowances need to be adjusted for age. "As your |
| we wanted to pay them an allowance to help them | | | | children get older, they will have to take on more |
| learn how to budget for college. What did we | | | | responsibility for their spending habits as their |
| consider? | | | | allowance is increased," the site says. We hope the |
| 1. Weekly expenses. According to the MSN Money | | | | twins learn how to manage their allowances wisely. |
| site, as children get older "they will have to take on | | | | 6. Mandatory savings. "Kids an Money: Allowance and |
| more responsibility for their spending habits as their | | | | Spending Decisions," an article on the Family Education |
| allowance is increased." We haven't had teens in the | | | | Website, tells parents to pay kids in bills that encourage |
| house for years, so it took several months to figure | | | | savings. "Saving $5 a week at 6 percent interest |
| out the twins' weekly expenses. | | | | compounded quarterly will total about $266 a year," |
| 2. Expectations. According to the Teen Help site, | | | | according to the site. We pay by check, expect the |
| parents (in our case, grandparents) should make | | | | kids to save a percentage of their allowance each |
| allowance expectations "clear and reasonable." Our | | | | week, and deposit this money in their bank accounts. |
| grandchildren must wash their sheets, towels, clothes | | | | How much are we paying our grandchildren? After |
| and do a few additional chores to receive an | | | | several family discussions we settled on $40 a week |
| allowance. These chores must be done on time. Some | | | | and the twins seemed pleased with this amount. It |
| parents pay teens for good grades, but we do not. | | | | should cover small clothing purchases (t-shirts, shorts, |
| We think grades are their responsibility. | | | | socks etc.), a few lunches, movies, and other |
| 3. Special expenses. Every once in a while the twins | | | | recreational activities. We will re-evaluate the rate in |
| want to do something special. For example, our | | | | three months. |
| granddaughter is going camping in the Black Hills with | | | | The twins have two more years of high school. Both |
| her Girl Scout troop, and needs money for tourist | | | | of them are taking honors courses and they already |
| attractions and souvenirs. We are giving her this | | | | have money smarts. Managing their allowances should |
| money. | | | | make them ever smarter. By the time they leave for |
| 4. Exclusions. In our minds, an allowance should not be | | | | college the twins should be budgeting wizards. |