Should You Give Your Children an Allowance?

Ask yourself–what is the purpose of the allowance?

First- Do you need an allowance to teach your kids on how being part of a family means working together for the mutual benefit of everyone?– The risk of giving your kids money through an allowance is that it may lead your children to believe that money is the only incentive for behaving or completing chores.

2nd– If you withhold the allowance as a punishment for not completing regular chores then you are giving the message that controlling money can be a form of punishment.

3rd For the kids who are not motivated by money, tying an allowance to their chores can become a parent’s disciplinary nightmare.

Fourth the allowance money may be the only opportunity for a child to make decisions about how to spend their money. —As a result they spend all of it the minute they get their hands on It.—not the best lesson to learn early in life.

Finally-You, as the parent, must decide which works best for your family, and your circumstances. The most important rule of thumb in parenting is to remain consistent and clear about your choice. So once you decide what is best for your child to learn about money–stick to it!

Answers from A to Z

About Ann Zuraw

Ann Zuraw, the voice behind "Chicks, Chat and Change", is a Certified Financial Planner (CFP®), Chartered Financial Analyst (CFA®), and Certified Divorce Financial Analyst (CDFA™). If you have comments on this post contact Ann Zuraw

, ,