When it comes to allowances for kids, there are generally two groups. Those who advocate for it and those who don’t are equally as vocal. There are a few things to be considered before deciding which side to be on.
What are the Rules?
Some parents believe you shouldn’t pay your kids for helping out at home. It teaches them wrong expectations that they will get paid for everything they do or they shouldn’t have to do it. Other parents pay only for extra chores that need to be done in addition to the ones assigned to the kids. Whatever you decide, you must be consistent with it.
Another consideration is how much you will pay the kids. Some parents give a flat fee while others believe that paying more for bigger jobs teaches kids that when you work harder, you get rewarded more. Once again, consistency is the key to success when it comes to how much you will pay.
How to Spend It?
Once the kids have earned the money, they may feel it is theirs to do whatever they want with. However, a parent’s job is to teach their kids about handling money responsibly. Some parents choose to require their kids to put part of the allowance away for savings. Others make them use the money for items they need, such as items for school or clothing. Still other parents continue to pay for the essentials but require the kids to use their own money for things they want.
In the end, allowances are tools parents can use to teach financial responsibility and how to handle money or they can be used to start bad habits early on. How the parents view money for themselves will be reflected in the rules they make for allowances.
If you have a child and are considering giving them an allowance, take a moment to look at your own financial state. See the mistakes you’ve made as well as areas where you’ve succeeded. Vow to teach your kids the right lessons about money instead of letting them follow the wrong path.
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