Tag Archive | "allowance"

Should Your Children Have To Earn Their Allowance?

For quite some time a philosophical debate has been raging. Many parents wonder whether or not it makes sense for a child to have to “earn” their allowance. In other words, should the kids have to do something around the house to actually earn the allowance that they receive — or should it freely be given with no strings attached.

To the extent you’re married, or have a partner who is helping you raise children, it’s important that you have a conversation about this topic so that there can be clarity and consistency. We as parents love our kids. We want the best for them, and sometimes we feel guilty. Why would we feel guilty? Many of us have to work long hours and we often don’t really feel as if though we get to spend enough quality time with our children. As a way of compensating for this, we sometimes indulge our children by getting them nice gifts of providing them with money.

As it relates to allowances, sometimes we just feel it’s better to give them the money without them having to do anything to earn it. This actually makes us feel better about ourselves because we want our kids to know we love them even though we spend long hours away from them at work. However, is this really in the best interests of the child? That’s the challenging conundrum that a lot of parents face.

When you think about the reality that your child will encounter upon leaving the protective shelter of your home, will they be given money for doing nothing? Probably not, unless they become a celebrity — of course, that’s said in jest. But the very serious question that parents have to ask themselves is whether or not they’re ultimately training their children to expect something for nothing by not attaching an allowance to any work output.

Most experts suggest there’s a middle ground. You can certainly give your child an allowance that’s not based on specific tasks being completed, but rather, for helping out around the house when asked and for being generally helpful when help is needed. That’s a reasonable approach worth considering.

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The Easy Way To Show Your Kids How To Save Money

There are a lot of different ways that you can show your kids how to save money. But there’s always a bit of uncertainty over which method might be best. Let’s talk a little bit about some of the reasons why it’s important to have this conversation with your kids, and also provide some strategies that you can use to make the process a lot easier.

One of the key reasons many parents needs to talk to their kids about saving money is because it will provide them with a solid foundation for their own future. After all, very few people can simply live off interest and dividends without having to worry about where the money comes from. So it’s imperative that you have a low-key, relaxed conversation with your kids that helps get them to start thinking about why it’s important to save money. Aside from the obvious reasons like being able to buy the things that they’d want and need in the future, there is another important reason that kids need to realize — the unexpected situations in life that present themselves that require money in a hurry. You need to have some money put away to meet those challenges.

With that said, here are some strategies that you can use to help you have a positive, meaningful conversation with your kids about the importance of saving money. Try to use as many real-life examples as possible. Kids will often relate better to stories than to cut-and-dry instructions that they need to follow. It’s also a good idea to ask your kids a lot of questions along the way, to make sure that they’re actively thinking about what’s being discussed as well as to hear what they might come up with as strategies for saving money.

Perhaps the most important thing you can do is to teach by daily example. You don’t have to make this an awkward situation where you bring up the topic of money at every turn, but our kids soak up what we do and learn by example. Show your kids how to save money by actively doing it and mentioning it every day. Before long, your kids will be well on their way to being financially savvy savers.

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