Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: MONDAY, July 2, 1990                   TAG: 9006300373
SECTION: EXTRA                    PAGE: E-3   EDITION: METRO 
SOURCE: Tammy Poole
DATELINE:                                 LENGTH: Short

TIPS ON SETTING A CHILD'S ALLOWANCE

A: Give an amount comparable to what other children in the area get, advises Sylvia Porter's Personal Finance magazine.

Giving too much won't allow the child to set priorities, and it sets up unrealistic expectations; too little may put him in a "poor" frame of mind.

Other tips include:

Set a specific time to distribute the allowance. Stick to it - being late makes you appear irresponsible.

Give the money at the beginning of the week, since it will probably be spent by the weekend. This helps teach the child to wait for what he wants.

Explain what the allowance is for. In some homes, it's strictly spending money; in others, it might include school lunch costs or savings.

Don't add to the allowance if the child overspends and asks for more. Sticking to a set amount helps a child learn to manage credit as an adult.

Discuss legitimate needs for an increase. Try working out a reasonable allowance together.

Help your child understand priorities - such as saving for an expensive purchase.

If the child is too young to work outside the home, consider paying for extra chores - those he or she is not regularly responsible for. Work out exactly what the jobs include and the dollar value of each job. Don't pay for doing regular chores. Children should learn that they, too, have a responsibility as a family member.