Parent to Parent: Earning an allowance

Vacuuming the Living room... $3
Picking up the messy storage room… $7
A valuable lesson in earning money... priceless!

Jacquelyn Germani, daughter
"They are giving these lessons to me to know that money doesn't just grow on trees."

And Jacquelyn Germani, 10, is a good student!

Jacey German, mom
"I'll pay you $7 to clean the whole room."

Jacquelyn’s has been working for several months to raise enough money to buy herself an expensive pair of boots.

Jacquelyn Germani, daughter
"I didn't know it was going to be this hard."

Jacey Germani, mom
"Without question, she is learning the value of money."

Here's how parents can give their kids an education along with their allowance. Experts say when kids are young, keep the tasks simple and short, then work towards more complex chores!

Lawrence Kutner, Ph.D., Mass General Hospital
"A typical three-year-old wants it, wants it all and wants it now. By the time you are a teenager, you should say I want to buy that iPod, it costs x amount of dollars. I have to plan out for the following number of months to save this amount to do it."

Plus, to help their financial future, let them make money mistakes! Blowing their allowance can teach them a lifelong lesson.

Lawrence Kutner, Ph.D., Mass General Hospital
"They should be able to spend that money on what they want, not on what you say they should have and should be able to make mistakes, see the consequences and recover from the consequences."

And teach your kids that not every job comes with a paycheck!

Jacquelyn and her brother, Blake, have family duties, in addition to paid chores.

Jacquelyn’s just $10 away from buying her boots, but she's walking away with an even more valuable education.

Parents can also help make teens money smart by teaching them how to balance a checkbook.

Experts say when it’s their own money on the line, kids learn the difference quickly between price and value.