Author: Guest Contributor
Category: Family
Published Date: 07/03/2018
Comments: 69
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A topic that comes up in our home quite often is the question of allowance. While it does make sense for many kids to get an allowance from their parents, there are also negatives too. It helps children to learn the value of the things that they want, while teaching them to learn how to make financial decisions, budgeting and money management. We might not have learned these lessons as children and ended up in financial trouble by adulthood. Giving your children a small allowance from a young age can help them to potentially avoid this. But is it a good idea?
For some, they don’t believe in paying children for chores. After all, they live in the same house and are responsible for their own things. They should be doing their chores without the need for a financial incentive, right?
Whether or not you decide to give your child an allowance, using a software like Goalsetter to help your children learn to save their money is smart.
Let’s discuss the different types of allowances as well as their pros and cons.
Regular Allowance
Giving your child a set amount on a weekly basis would be considered a regular allowance. There is some evidence to say that a regular allowance is the best thing that you can do for your child.
Pros
- Your child can learn to plan ahead for the things that they want to purchase.
- Your child can learn to manage their own money.
- Parents can easily plan what allowances they pay, based on their own budgets.
Cons
- Unconditional allowances that are given regularly can breed a sense of entitlement.
Allowance When Needed
Some parents don’t believe that a child needs their own money, so instead, they will give them an allowance when they need it for something special, like going out with their friends.
Pros
- This offers the ability to negotiate and come to mutual arrangements, allowing your child to get what they want, when they need it.
Cons
- A child can’t learn money management this way because they will always have money available to them, when they need it, without having to earn it on a regular basis.
Allowances For Chores
This is likely the most popular way children can earn an allowance; jobs around the home in exchange for a monetary reward.
Pros
- Earning money for doing something helpful, gives the child a sense that they are doing some good in the home.
- This creates a good connection between earning money for work and is setting them up for what it will be like in the future.
- The lesson that you have to work hard to earn money and it’s not just handed to you.
Cons
- There is an expectation when living in a home with family that you have responsibilities. Paying for this undermines that expectation.
- You may find yourself being asked for money when you ask your child for a job to be done.
- If you’re short on cash, you could find your child refusing to do the jobs you’ve asked.
Allowance is a very personal thing and it’s something that you should decide together as a family. There is a fine line to being taken for a ride and coming to a fair arrangement, and ultimately you have the final say.
Do you pay your children an allowance for cleaning? Comment below and let us know!
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Hello There!
Hi! I’m Heather, Mom of 3, professional snack opener, the only person who knows where everything is in my house and part-time magician (I can turn a bunch of candy into a gift basket and everyone thinks it’s amazing). I share a mix of parenting moments, easy recipes, crafts, and DIY home decor projects.
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I like this. Whether you give your kids an allowance or not, I think it’s important to teach them financial responsibility and how to earn, keep and be responsible of their money.
My son doesn’t get an exact allowance every week, but he does earn a “digital” allowance. Mostly to pay for his memberships and in-game items for the games he plays. There are pros and cons to every allowance system, like you mentioned. Our system works well for us, but may not for someone else.
wow, this is a smart idea. teaching your children the value of earning and breaking down the pros and cons, thank you for sharing, i wish my parents would have done this to me when i was a child.
it would be great being a kid, knowing that you earn money through actions
Some good points on a very important subject. Thanks for the post.
thank you for stating the cons and pros of allowance, it is always good to be aware of this for the future
I don’t have children so can’t relate to this subject. However, I think everything in moderation is ok. If you want to give a small allowance, it’s ok. As long as they don’t take it for granted, it’s not a bad thing.
Those are some good points though I prefer kids doing household chores with the reward of other things like a snack but not with money always. But teaching them to save their earned money would be a good lesson.