Having a child is difficult enough as it is, so we understand that the moment you are thinking about allowance and financial education you might like some guidance. Here you can read about how much other parents give their children, what they should be learning about money and what they should know already.
How much do I give?
If you have a 5 year old child, the average amount of allowance is €1.50 per week. Of course this can vary on your personal situation as well as the items you expect your children to buy for themselves.
Experts in the field of financial education advise not to link allowance to behavior or chores. Allowance is a tool for your child to learn about finance and money, it is not a method of paying your child for good behavior or doing their chores around the house.
What can I teach them?
According to many experts, 5-6 years old is the right age to start giving your children an allowance. Giving an allowance also means that they will need to learn that money is finite. Teaching them that there is a limited amount of money and that they can not buy everything. This means that they will not always get what they want and that in case of money, no means no.
It is also important to keep in mind that if your child spends all their money, that you do not give or lend them more. At this stage in their financial education understanding the money isn't endless is the lesson you want them to learn.This is especially important because when kids are 4-5 years old, they will start looking at others and coming to you saying things like "but Emma has this" or "Bryan's parents gave him .... for his birthday".
What should they know?
By the time your children are 5 years old, it is important for them to be able to count and know the different value of coins and bills. This means that they understand that having seven €0,50 cent coins is worth less than having one €5 bill. When they are younger, children still equate the number of items with the value, instead of the given value.
Bare in mind that everything we suggest in this blog is a general guideline, we strongly advise to look at your child and see what you think is best for them. After all, you know your child better than anyone else.