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Larsa Pippen defends teen daughter's $2,500 monthly allowance. How much is too much?

"L.A. is super expensive."
/ Source: TODAY

Larsa Pippen says her teen daughter receives a monthly allowance of $2,500.

“You guys understand, L.A. is super expensive,” Pippen said during "The Real Housewives of Miami"?reunion hosted by Andy Cohen on Bravo. “So after school, she orders food or Uber or buys presents for her friends’ birthdays.”?

Pippen added that Sophia also makes her own money through modeling.

The 49-year-old reality star and former NBA star Scottie Pippen divorced in 2021. They have four children: Justin, who is around 18, Preston, 21, Scotty Jr., 23, and Sophia, 15.

Does Sophia's allowance sound realistic or excessive?

Most parents (79%) give their children an allowance, according to the 2022 T. Rowe Price’s 14th Annual Parents, Kids & Money Survey.

The survey of parents with children aged 8 to 14 found:

  • 35% of parents give their children a weekly allowance of $11 to $20 while 24% of parents give $21 to $50. Another 22% give $6 to $10 and 13%?give $5 or less. A small 6% give $51 or more.
  • 64% of parents said kids need to earn their allowance and 16% said allowance is not earned-based.

Larsa Pippen and Sophia Pippen
Larsa Pippen says her teenage daughter Sophia Pippen receives a monthly $2,500 allowance. Manny Hernandez / Getty Images

According to Francyne?Zeltser, the clinical director of psychology, training and special projects at Manhattan Psychology Group, giving an allowance — and a specific amount — is individual to a family.

"One family's $2,500 allowance might be equivalent to another family's $25 a month," Zeltser tells TODAY.com. "Sometimes it's about affordability."

Allowances can be guaranteed or contingent on good behavior and household chores, she says.

To determine the “right” amount of allowance, says Zeltser, take at least three months to chart what your child would spend in a month if you were paying for it. Then decide?whether you’d like to give or have them earn that in an allowance and if so, how often the?allowance?is?given?and through what means, either electronic pay, cash or a credit card.

If parents aren't comfortable giving allowances or can't afford it, kids can still learn financial responsibility.

For preschool-aged children, games with toy money or piggy banks teach counting skills and elementary school kids play banker and real estate agent through board games like Monopoly.

Zeltser suggests smaller lessons, too.

“If you’re at a bake sale, give your child?a set sum?of money, such as?$5 and tell them they can spend the full amount or spend a little and save the rest?to use on another occasion, such as at?the arcade,” she says. Or, at the grocery store, kids can help shop within a certain budget.

Allowances help children more than just budgeting, she says, they teach delayed gratification and how to prioritize needs versus desires.

"At some point, kids have to learn how to budget and understand personal finance," says Zeltser. "Those that don't often struggle later in life."

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