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Start calculating allowances today with a free FIP membership! Membership also includes the interactive FIP Chore Chart. One of the best tools to teach children financial literacy is an allowance. Allowances help children learn to make decisions, think about alternatives and consequences and gain a well-balanced perspective about money. Allowances can be used to encourage saving, investing and giving, as well as spending. FIP TIP: At what age should an allowance begin? When your child becomes interested in money and understands the concept that you exchange money for goods or services -usually around age five or six - it's time.
The FIP Allowance Advisor helps you determine how much allowance your child may receive based on variables that you provide. Before beginning, we recommend you have an estimate of how much money you spend on your child each week on items such as toys, gifts, entertainment, sports, candy/snacks, books, school supplies, etc. If you are not sure, just download the FIP Allowance Tracker and track your spending for two weeks. We recommend doing this for each child in your family, as allowances and expenditures differ depending on age. You also have the option of estimating amounts if you do not want to track expenditures. When you have a good idea of how much you are spending on your child weekly, you are ready to get started. If you have more than one child, we recommend starting with your oldest child first. For tips on allowances, chores and teaching children a work ethic, listen to FIP 's Parenting Minutes (turn volume up and click to play): This interactive web tool is available to FIP members.
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