When it comes to creating an allowance plan, you have options. One common approach is to give a chore-based allowance: This plan means that your child has to work for the money (and if they choose to snub their chores, they get nothin’). As mentioned earlier, the value of this approach is that it introduces the notion that a strong work ethic is rewarded. On the other hand, if your child’s desire to not do chores outweighs her interest in earning an allowance, you’ll find yourself in a tough spot.
Alternatively, you might opt to pay your child a set amount of money every week, regardless of the chores they do around the house. The benefit of this approach is in its simplicity; it also avoids a scenario in which your child is unwilling to be helpful and responsible around the house unless they get paid for it—decidedly not cute. A variation on this approach, courtesy of Lieber, is to allocate the allowance in specific ways. Lieber gave his 7-year-old daughter $3 weekly, but she was free to spend only $1. Of the remaining $2, one had to go into a savings jar and the other had to go into a give jar for a cause of her own choosing.
Finally, there’s a compromise between these two approaches, and that’s to give your child a set allowance no matter what while offering the opportunity to earn more money (extra credit, if you will) for doing certain things around the house that go above and beyond your everyday expectations. Here, you’re rewarding hard work whilst eliminating the risk of raising a kid who won’t lift a finger unless there’s money involved.