Home > Kids > Values and Responsibilities > Money and Kids > Allowance and Your Preschooler

Allowance and Your Preschooler

Before the age of four or five, most children have little concept of money and its function. Older preschoolers begin to understand its usefulness—and may want some of their own.

Giving your four-year-old a small weekly allowance can provide a helpful introduction to the idea of money management. Your preschooler does not need a lot of money, but that's not really the point.

If he has his own money, your child will begin to appreciate how much the things he wants cost. He will begin to make decisions as a consumer—whether to buy a candy bar or a coloring book. And if he wants something really badly, your child may even begin to save his money in anticipation of the future.

If you do decide to give your preschooler an allowance, try not to link it to doing his chores or helping around the house. Allowance, especially for preschoolers, is pocket money—nice to have but totally unnecessary. An allowance is not a payment for doing his chores. He should be encouraged and expected to help around the house not because he gets paid for it, but because he's a contributing member of the family.

More on: Preschool


Excerpted from The Complete Idiot's Guide to Parenting a Preschooler and Toddler, Too © 1997 by Keith M. Boyd, M.D., and Kevin Osborn. All rights reserved including the right of reproduction in whole or in part in any form. Used by arrangement with Alpha Books, a member of Penguin Group (USA) Inc.

To order this book visit Amazon's web site or call 1-800-253-6476.


Where Should Newborns Sleep?
We've rounded up all the alternatives and considerations to make a safe choice for your new addition.

Find Today's Newest & Best Children's Books!
Looking for newly released books for your child? Try our new Book Finder tool to search for new books by age, type, and theme, and create reading lists for kids!

5 Tips to Help Make Your Child Self-Sufficient
Follow these tips to help your child become self-sufficient, and help him learn the skills he'll need to take care of himself.

Ready for Kindergarten?
Try our award-winning Kindergarten Readiness app! This easy-to-use checklist comes with games and activities to help your child build essential skills for kindergarten. Download the Kindergarten Readiness app today!

stay connected

Sign up for our free email newsletters and receive the latest advice and information on all things parenting.

Enter your email address to sign up or manage your account.

Facebook icon Facebook icon Follow Us on Pinterest

editor’s picks