Paying your child a regular allowance may hurt them in the long run!

Paying your child a regular allowance instills in your child a paycheck-to-paycheck mental model for how to relate to money. Instead of allowance, pay them to identify a problem (need) around the house and then have them propose a solution to fix the problem. An example could be raking up leaves in the back yard or folding up and putting away clean clothes. Once the problem is identified, the parent and child should negotiate a price and a specific deadline to solve the problem. This exercise teaches the child how to identify (business) opportunities, negotiate prices and help solve someone’s problem and get paid for it!