Most financial advisors suggest that children begin receiving an allowance when old enough to do chores around the house. Many experts do point out that chores like dusting, cleaning rooms, emptying the dishwasher, setting and clearing the table, and caring for pets should be expected behavior, a responsibility of living with and contributing to a happy, stable home life. In this scenario, the child doesn't earn allowance by performing chores, but receives it as his or her share of the family income. The emphasis here is on family stability-all family members have their own parts to play. As a source of more income, extra jobs outside of the expected chores should be offered to children.
Experts warn to pay per job rather than by the hour.
By the hour is too abstract to motivate children, especially younger ones. Until the child moves out, thus ceasing to be an active member of the household. Financial advisors warn parents the consequences of raising children with poor financial skills is often a lifetime of headaches. They cite overdrawn bank and credit accounts, shortages of money for schooling, personal loan requests, and failures to meet mortgage or auto payments as problems children often ask their parents to solve.