I'm curious what makes you opposed to giving a cash allowance? Not that you have to, just wondering what your reasoning is. But aside from they, yes I think it's important to teach your kids about money from an early age. Teaching them to save and spend wisely by giving them the opportunity to do so is the best way! Whether you use play money or say that a certain amount of work will earn her a toy, or whatever, the idea is basically the same. I think that its important for kids to learn that money has to be worked for and to let them make a few money mistakes now when the stakes are low. If they miss out on something now because they didn't handle their weekly allowance wisely, it's not going to ruin them financially (I'm sure you are still providing all her needs). But if they are 25 and go into thousands of dollars of debt because they didn't handle their money wisely, well that could become a much larger problem that will follow them for years. My sister can't really afford to pay allowance though. So what she does is each of her kids has a chore chart and once they complete a certain # of chores they get to pick a reward. She has rewards written on popsicle sticks and kept on a jar for each kid. So there are things like a new toy, a date with mom/dad, a day/week off of chores, a new outfit, a video game (for the older kid), etc. You can tailor the rewards to your child. But its definitely good to tie money or just things she wants but doesn't need to chores in order to teach that things aren't free!
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