Unfortunately, taking your lead from the past, or from people around you, is a strategy fraught with peril. What worked 25 years ago probably won't fly today. The world, and kids, have changed dramatically since you were growing up. Today we are bombarded with more advertising, more choice of products and many of us have a busier, more stressful lifestyle than our parents did. In the same way, what appears to work across the street might be the wrong approach in your house.
Every family has different values, customs, income levels and attitudes towards money.
It's quite simple, really. Create your approach based on certain principles which have been proven to work over and over again, by my own family and by the families of many of my clients and friends. Have your child make a promise to you. Making Allowances for the First Time To reflect the five allowance principles, I created The Allowance Contract, which you can use to set up an allowance program with your child. Explain to them that a contract is a promise or agreement to do something.