Equifax

Finance Blog

Stay financially savvy with the Equifax Advisor.

Sign up for our FREE Monthly Email Newsletter

 

Thank you for signing up for the FREE Equifax monthly newsletter

In addition to keeping in the financial know, you may be interested in checking your credit score and report.

Understand your credit. Help protect your identity.

Equifax Complete™ Premier Plan

  • Know What May Influence Your Credit Score and Be Alerted of Changes
    Credit score monitoring with custom alerts
    Important Disclosure: The Equifax credit score and 3-Bureau credit scores are based on an Equifax credit score model and are not the same scores used by 3rd parties to assess your creditworthiness.¹
  • Help Protect Your Identity
    Automatic fraud alerts encourages lenders to take extra steps to verify your identity²
  • Lock Your Credit
    The ability to lock and unlock your Equifax Credit Report³
Save 75% your first 30 days with the purchase of Equifax Complete™ Premier

$4.95 for the first 30 days, then $19.95 per month thereafter. You may cancel at any time; however, we do not provide partial month refunds.4

¹The credit scores provided under the offers described here use the Equifax Credit Score, which is a proprietary credit model developed by Equifax. The Equifax Credit Score and 3-Bureau scores are each based on the Equifax Credit Score model, but calculated using the information in your Equifax, Experian and TransUnion credit files. The Equifax Credit Score is intended for your own educational use. It is also commercially available to third parties along with numerous other credit scores and models in the marketplace. Please keep in mind third parties are likely to use a different score when evaluating your creditworthiness. Also, third parties will take into consideration items other than your credit score or information found in your credit file, such as your income.

²The Automatic Fraud Alert feature is made available to consumers by Equifax Information Services LLC and fulfilled on its behalf by Equifax Consumer Services LLC.

³Equifax Credit Report Control™ is only available while you have a current subscription to Equifax Complete Premier. Locking your credit file with Equifax Credit Report Control will prevent access to your Equifax credit file by certain third parties, such as credit grantors or other companies and agencies. Credit Report Control will not prevent access to your credit file at any other credit reporting agency, and will not prevent access to your Equifax credit file by companies like Equifax Personal Solutions which provide you with access to your credit report or credit score or monitor your credit file; Federal, state and local government agencies; companies reviewing your application for employment; companies that have a current account or relationship with you, and collection agencies acting on behalf of those whom you owe; for fraud detection and prevention purposes; and companies that wish to make pre-approved offers of credit or insurance to you. To opt out of such pre-approved offers, visit www.optoutprescreen.com/.

4We will require you to provide your payment information when you sign up and we will immediately charge your card $4.95. After that, we will charge the card $19.95 for each month you continue your subscription. You may cancel at any time; however, we do not provide partial month refunds.

Equifax® is a registered trademark and Equifax Complete™ Premier is a trademark of Equifax, Inc. © 2014, Equifax Inc., Atlanta, Georgia. All rights reserved.

How to Adjust Your Kids’ Allowance as They Age

Written by Equifax Reporter on November 27, 2015 in Family Money  |   No comments

If you’re a parent, one of your biggest head scratchers when it comes to personal finance might revolve around whether you should give your child a regular allowance. Hopefully, you’re thinking about a plan to teach your child or children about money, and if so,…

AdjustKidsAllowanceIf you’re a parent, one of your biggest head scratchers when it comes to personal finance might revolve around whether you should give your child a regular allowance. Hopefully, you’re thinking about a plan to teach your child or children about money, and if so, a weekly or monthly allowance might end up a part of the discussion.

“Most parents agree that children need some money to manage so they can learn how to make better financial decisions,” says Tom Drake, a financial analyst from Alberta Canada and blogger for AllBuisness.com. “It’s the approach that becomes contentious. Do you just provide the money, or should you make them work for it by tying allowance to chores?”

Drake, who has two young children, also points out that allowance policies need to change as kids grow and mature. “What you expect from a five-year-old is different [from] what you require from a teenager.”

When are children ready for an allowance?

According to PBS.org, most children are ready to start learning about money when they are at preschool age, or around 3 or 4 years old. At that age, there’s no need to provide a large weekly allowance. To start, a general rule of thumb is $1 per year of age. This provides your children with a way to begin learning how to budget their money and gets them in the habit of seeing that money can have different purposes.

No matter how much you decide to give children for an allowance, it’s important that they learn to save for the future, that they figure out their own spending priorities, and that they begin to think about donating money to causes they care about.

After you have determined the amount you will give your children, it’s important to decide how you will give it to them. Some parents tie allowance to chores, only providing the money after their kids have completed a list of agreed-upon tasks. “Other parents want their children to learn that you can’t get paid for everything you do and that some jobs are required as part of a family,” says Drake. “You have to decide what lessons you want to teach your children.”

In our household, my 12-year-old son receives a modest allowance as a way to learn about money, and he’s expected to do his chores without specific compensation. However, he also has opportunities to earn extra money by helping with administrative tasks in my home office and by participating in 4-H to earn money. As he gets older, he is prepared to see a smaller allowance as he begins to work outside the home.

Changing allowance amounts for older children

As your children age, they may need a bigger allowance, regardless of whether you increase what you pay for chores or just add to the total amount given. HealthChildren.org suggests basing an allowance on what you expect your children to start paying for themselves. So if you expect your children to donate to charity, save for the future, and cover their own entertainment costs, it’s important for you to provide an allowance that allows them to achieve some of these financial goals.

For example, my son knows that I will pay fees for extracurricular activities, but he is responsible for paying for his own food when he goes on trips with these activities. He is also responsible for paying for his own gadgets and toys, as well as his music, video games, and movies. My son’s allowance is large enough that he can give 10 percent to charity, save 20 percent for the future, and use the remainder to save for pricier toys in about three months. Given his age, his allowance is about three times what it was when he was 7.

When your child is old enough to get a job, you may want to consider reducing the amount of allowance you pay. Like many parents, I expect my son to find a part-time job when he turns 16, and his allowance will disappear at that time. While I will still pay for extracurricular activities and the necessities of life, he will be responsible for his wants.

Establishing expectations early on is an important part of the allowance process. Let your children know their responsibilities, as well as what you will cover. You can also make it clear that they are expected to develop habits of long-term saving and charitable giving while learning to make responsible spending choices.

Related Articles
What You Can Teach Your Children Right Now About Credit
Helping Teens Make the Most of Summer Jobs
How to Live on a Tight Budget When You Have Kids

The information contained in this blog post is designed to generally educate and inform visitors to the Equifax Finance Blog. The blog posts do not give, and should not be assumed to provide, personalized tax, investment, real estate, legal, retirement, credit, personal financial, or other professional advice. Before making any financial decision, you should always consult with the appropriate professionals who can explain your options, rights, and legal responsibilities, and advise you on any tax, legal, credit, or business implications that may result from those decisions. The views and opinions expressed by the authors of blog posts are their own views and may not be the views or opinions of Equifax, Inc. and/or its affiliates.


No comments yet


Leave a Comment


Name :


Commenting guidelines

We welcome your interest and participation on this forum, but be aware that comments will be published at Equifax's sole discretion. Please don't use this blog to submit questions or concerns about your Equifax credit report or raise customer service issues. Instead, you should contact Equifax directly for all such matters and any attempts to do so in this forum will be promptly re-directed.

Some other factors to consider when commenting:
  1. Registration and privacy. While no registration is required to visit our forum, participants wishing to post a message must register by creating an account. All personal information provided by forum members incident to registration is governed by our Terms of Use and Privacy Policy.
  2. All comments are anonymous. We'll delete your name, e-mail address, and any other identifying information, including details about your investments.
  3. We can't post or respond to every comment - As much as we'd like to, we can't post every comment, nor can we guarantee that we will respond to each individual message. All questions or comments about your Equifax credit report or similar customer service issues should be handled by contacting Equifax directly.
  4. Don't offer specific legal, tax or financial advice. All of the materials on this Site are for information, education, and noncommercial purposes only and this forum is not intended as a means of expressing views or ideas regarding any specific legal, tax, or investment advice. While offering general rules of thumb is both permitted and encouraged, recommending specific ideas or strategies regarding investments, taxes, and related matters is prohibited.
  5. Credit Repair. This blog is not intended as a venue for the discussion or exchange of ideas regarding credit repair or other strategies intended to assist visitors and community members improve or otherwise modify their credit histories, ratings or scores.
  6. Stay on topic. Your comment should be concise and pertain to the specific post in question.
  7. Be respectful of the community. The use of profanity, offensive language, spam, and personal attacks will not be tolerated and egregious or repeat offenders will be banned from future participation. We encourage disagreement and healthy debate, but please refrain from personal attacks on our WordPresss and contributors.
  8. Finally: Participation in this forum may be terminated by Equifax immediately and without notice for failure to comply with any guidelines or Terms of Use. As such, you should familiarize yourself with all pertinent requirements prior to submitting any response through the blog or otherwise. All opinions expressed in this forum are solely those of the individual submitting the comment, and don't necessarily represent the views of Equifax or its management.

Equifax maintains this interactive forum for education and information purposes in order to allow individuals to share their relevant knowledge and opinions with other members and visitors. We encourage you to participate in discussions about personal finance issues and other topics of interest to this community, but please read our commenting guidelines first. Equifax reserves the right to monitor postings to the forum and comments will be published at our discretion. Do you have questions or comments about your Equifax credit report or customer-service issues regarding an Equifax product? If so, please contact Equifax directly. All opinions and information expressed or shared in blog comments are solely those of the person submitting the comments, and don't necessarily represent the views of Equifax or its management.