What’s the Right Way to Give an Allowance?

What's the right way to give an allowance? Robin Taub, Chartered Accountant and author of the book "A Parent's Guide to Raising Money-Smart Kids," answers the question.
By Robin Taub · August 17, 2020 · 1 minute read
Family of man, boy, girl, woman sitting on couch and man hands allowance money to kids

Robin Taub is a Chartered Accountant, and author of the book “A Parent’s Guide to Raising Money-Smart Kids”.

Originally published on RBC Discover & Learn
By Robin Taub

An allowance is one of the best tools for teaching your kids about money. Some families believe that an allowance should be payment for chores their kids do around the house. Other families strongly disagree. They feel the chores should be done as a family responsibility and the allowance is purely a money management tool.

Whatever you decide is right for your family, be sure to explain that to your kids, so they know why they are getting their allowance. And give them some guidance on how the allowance is to be used. Really, they have four choices when it comes to money: they can either save it, spend it, donate it, or invest it for the long term.

Learn more about Mydoh and how it can help your kids build good money habits early in life. You can use Mydoh as a chore and allowance app to make it easy to assign tasks for your children. When your kids know exactly what they’re supposed to do, they’ll be more likely to complete them.

Download Mydoh today to learn more.

This article offers general information only and is not intended as legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. While the information presented is believed to be factual and current, its accuracy is not guaranteed and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the author(s) as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or its affiliates.

Mydoh

Teach Your Kids How To Earn, Spend & Save Money

with the Mydoh App & Smart Cash Card.

After the trial, Mydoh is just
$2.99 per month

Related articles

Explore Education
August 24, 2020

Shopping and dining locally, especially now, is about recognizing the strength and resiliency of all Canadians. Learn more about why shopping local matters.

March 31, 2021

Kids as young as three are already beginning to grasp the concept of money. Introduce the ABC’s of money to your kids with these fun games and practical tips.

August 14, 2020

Where do you start when talking about money with your kids? Is allowance a good idea? How do you explain the value of money to children? Find out how Mydoh can help with raising money-smart kids.

February 22, 2022

Despite Canada’s diversity, Black people typically earn less money. Here is what kids and teens need to know about the racial wage gap in Canada. By Deanne Gage.

January 25, 2023

From counting games for young kids, to encourage teens to start their own business, here are ideas to jumpstart teaching money to kids of all ages.

February 27, 2024

Your child’s education can help set them up for future success—but how do you afford it? Here’s how you and your teen can financially prepare for their post-secondary education.

March 9, 2022

Online games and board games are a great way to introduce financial literacy skills. Here are 12 fun money games for kids to play.

December 8, 2022

Teaching autistic kids and teens money skills is essential in helping prepare them for adulthood. Autism Canada shared some strategies to help parents.

October 14, 2020

Volunteering or donating your time, money, or unwanted items are great ways that kids can to give back to your community.

December 22, 2022

Accomplishing goals takes work, but the process is worth it. Discover how to help your child set realistic, attainable goals and persevere until they succeed.