Deciding on an Allowance - A Newsletter for Parents of Third Grade Children

Getting Started

If you've decided to give your child an allowance, start by talking about how it will be spent. You may want to put the agreement in writing. If you do, it might look like this:

Allowance Agreement Child's Name ___________________________ Amount of Allowance ___________________ Paid on_________________________________ Items It Will Cover ______________________ Any Limits______________________________ Date for Review _________________________

To be worthwhile an allowance should:

• be a set amount that is paid regularly (a third grader can probably handle a weekly allowance)
• cover items agreed on (remember to write these down)
• allow some extra with "no strings attached" (encourages making decisions)
• not be tied to regular household chores or be used as a reward or punishment (the purpose of the allowance is to learn how to manage money)

Prepared by Donna K. Donald, family life field specialist, and Vicki W. Sickels, former family support program associate, and edited by Laura Sternweis, communication specialist, Iowa State University Extension

...and justice for all The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, gender, religion, age, disability, political beliefs, sexual orientation, and marital or family status. (Not all prohibited bases apply to all programs.) Many materials can be made available in alternative formats for ADA clients. To file a complaint of discrimination, write USDA, Office of Civil Rights, Room 326-W, Whitten Building, 14th and Independence Avenue, SW, Washington, DC 20250-9410 or call 202-720-5964.

Issued in furtherance of Cooperative Extension work, Acts of May 8 and June 30, 1914, in cooperation with the U.S. Department of Agriculture. Stanley R. Johnson, director, Cooperative Extension Service, Iowa State University of Science and Technology, Ames, Iowa.

This newsletter is published for families with first grade children by Iowa State University Extension. For more information about parenting education, contact your local county extension office or access the Iowa State University Extension to Families website, www.extension.iastate.edu/families.