How to prepare your child for an allowance


My daughter is only five years old, but I'm already worried she isn't learning money management skills early enough.

We haven't started her on an allowance yet, and every time my wife and I vow to start another "chore sheet" on the side of the refrigerator, we don't always follow through on it and the chores don't get done and our daughter loses interest in whatever gift we've promised for reaching a goal.

I've held off giving her an allowance, figuring she wasn't ready for it yet. But with kindergarten behind her and first grade looming, I think we're getting close to starting it so she can learn some good habits early. I've always been a fan of intrinsic value, and try to teach her that everyone in the family has to do chores, whether paid or not, and that getting good grades is a sign that she's learning and doesn't have to be rewarded with money.