Is your child old enough to start earning an allowance? You may be wondering how much money to give and how to create a money system that will teach your child important lessons about saving, budgeting and earning their money. Here are some things to consider:

1. What type of system are you going to put in place? There are four main allowance methods that most parents use:

- Set allowance: Your child earns a fixed amount of money each week

- Need/want allowance: Money is spent when a child needs or wants something

- Chore-based allowance: Your child earns money for completing chores

- Learning-based allowance: Your child earns money based on performance at school/sport/extracurricular activities

Think about which method is right for your child/family.

2. How often do you want to pay your child?

3. What method will you use to pay your child?

4. What lessons are you going to impart? Think about encouraging your child to save a part of their allowance each week. This will help them develop good money and budgeting habits as they grow older and mage their own money. Get a piggybank for your kid to pocket away spare change.

How do you do allowances in your home? Share your tips in the comments!