Should You Give Kids Allowance?

Kids Allowance

An on-going debate for years now has been, "Should kids be given an allowance?" There are many strong arguments for both sides of this debate. Some children receive an allowance for good behavior, for getting good grades, for completing chores, or just because. There are pros and cons and also factors that should be taken into consideration when deciding on what is best for your children. You will have to consider your family dynamics and decide what works best for you and your children.

Pros of Giving Kids Allowance

-It teaches kids about money in general

-It teaches kids to budget their own money

-It teaches kids that they will be rewarded for doing well and completing tasks

-Your kids can be responsible for buying their own toys, games, etc.

Cons of Giving Kids Allowance

-Kids may develop a sense of entitlement

-Kids may think they don't have to work for what they get

-Kids will only work for the money, not because they are self motivated

When Should You Start Giving Your Kids Allowance

A good time to start giving children an allowance is when they are in first or second grade. This is a good time for them to learn about money and how we pay for things. You'll want to teach them as much as you can about money as soon as they are old enough to start understanding. For example, when your child asks for something at the store, explain that it costs money and it has to be paid for.

How Much Should Kids Allowance Be

Some experts suggest giving one dollar for each year old your child is per week. Example: If your child is five, he or she would receive $5 per week. You can also base allowance on chores completed. Put up a chart that shows how much your child will be paid for completing each chore. The harder chores that take more time would earn more money, whereas quick and easy chores would pay less. If allowance is based on grades, decide the dollar amount you want to give for As, Bs, and so forth. The amounts that you decide on should be enough that your children feel motivated to work for the money, but not so high that you are giving them more than what is being earned.

Final Thoughts on Kids Allowance

Teaching your children about money early on is a skill they will use for their entire lives. We all know what happens to adults who don't budget their money well. Educate your children on the use of money, saving money, paying for bills, and more. Paying an allowance is one strategy you can use to teach kids about money. However, you have to be careful with this one. Children are a part of your family. They should learn that they have responsibilities to the family. Good behavior, doing chores, and getting good grades are all expectations that you should have of your children without the promise of a monetary reward. If you want to reward them occasionally, that's okay. Don't let them grow to expect it. They won't do a good job because it's the right thing to do. They'll only do it for the money.