The general guideline here is a dollar per year of life each week, meaning a four-year-old earns four dollars a week. I know this sounds like a lot of money, but from the beginning it’s suggested that you help your child divide their allowance into three categories including saving, spending and charity. You might start with a a dollar in saving, two dollars in spending and a dollar in charity.
The saving money is to save for a big purchase. My daughter’s first purchase from saving was a Groovy Girl car. This is just teaching the idea to set aside money and watch how it grows. The spending money is just that, they can spend it on little things, save it for a few weeks or add it to savings to grow that faster. If you are going to put limits on their spending money such as no candy, it’s best to do this up front. The charity is for the change-drive at their school or the offering at Sunday school. If children are interested, you might help them to pick a charity they are interested in and donate there.
