When it comes to kids allowance, lots of people argue about that. Some people believe that giving allowance to your kids is a good way to teach them about money, but others would say that it will just teach them that they can get something by doing nothing.
Well, there are pros and cons on both sides, but here is why I think you should give your kids allowance and what is the best way to approach it. Also, you can read fantastic Ron Lieber book.
1. It will teach them to manage money.
If giving your kids allowance is done in a good way, you can use this exercise to make them realize and understand the importance of money, and managing it at their end.
2. It can make them feel proud.
For example, any birthday or Christmas gifts for their siblings and loved ones should be bought using this money that they get for allowance, and they should feel great about the fact that the used ‘their own money’ to buy something for their siblings.
3. It will give them independence in decision-making area.
Your child will feels good if he has some autonomy in one decision-making area. He will chose where and how to spend his allowance, no matter how little it is. Of course, the parents should retain executive veto power over any questionable spending decisions.
Important things to remember:
Real life doesn’t give you an “allowance” as an adult. You work to earn what you do. Have that in mind when discussing allowance with your kids.
Opinions are different and I respect that, but I believe that giving kids allowance allows them to learn about saving and spending money. When they are willing to make sacrifices for the things they really want, they value them more and have a better understanding of the fact that their parents also had to work and save to pay for all the things they might otherwise take for granted.
What are your thoughts when it comes to kids allowance? Here are my ideas on how kids can save money.
Such a great topic especially now that my son is almost 9 years old. Thank you for this.
This topic has always come up in conversations with other parents. My kids are always asking things like “If I wash the dishes can I get $$$?” and I turn around and ask, “If I wash your laundry can I have $$$?” I was raised that chores were part of the contribution to the household. Everyone works together to maintain the home. So no my kids do not get an allowance but if they want something we decide if it is something they really need and if they want to go to the movies (for example) with friends we give them that money. I don’t think there is a right or wrong here just different ways to teach the same thing. When we talk about wanting something we talk about the value and budgeting for it so that financially we can decide if it is doable, so there is definitely money management skills involved! Great post!