Pros and Cons for giving kids and allowance.

Statistics show that MOST parents give their children some sort of allowance AND that it is often tied to performing certain household chores, but did you know that there are some pretty solid arguments for NOT being an “allowance household”? Let’s run them down

Kids SHOULD get an allowance

If it’s tied to chores or grades, teaches them the relationship between work and pay

Making spending decisions (both good and bad) lays the ground work for developing a budget and determining wants vs needs

Teaches delayed gratification and the importance of planning ahead

If you DO decide to provide an allowance: Check in regularly to see what they are spending on, how they track it, how much they save so you can talk about what decisions they have made and what they learned. This also helps them develop a comfort level around talking about money, which is something that will help them in their future relationships

Kids SHOULD NOT get an allowance

If you tie allowance to chores, you create focus on the payoff and not the intrinsic value of contributing to the family unit.

May contribute to a sense of entitlement

Family budget issues may not allow for them to get an amount comparable to their friends

If you DO NOT provide an allowance: You can still teach them about financial concepts by allowing them to earn money periodically for “extra” tasks as your budget allows. They can also earn things like extra screen time, a later bedtime, or earn an experience. You might also consider putting them in charge of the budget for a certain area of spending–for example, they can make decisions about a segment of the grocery budget and figure out how to get the most for their money by shopping around for sales or clipping coupons.

What do you think? Give us your best argument FOR or AGAINST giving an allowance in the comments!