The tedious topic of whether to give allowance or not to give allowance to your kids continues among parents to this day. Some parents believe that chores should be mandatory in the household while others feel larger chores should be paid for.
Does giving kids an allowance teach responsibility? Does it help them understand the importance of saving money or the rewards of chipping in at home? Let's weigh the pros and cons of giving a child an allowance.
There are many pros when it comes to giving an allowance to your children. It can be an effective way of teaching kids responsibility in the household
- When an allowance is given to kids for good grades or chores completed, they begin to understand how money is made. They learn that they are rewarded if they work hard and if they complete their goals.
- Kids will complete tasks and feel proud of working for the money they receive. This will motivate them to keep on their tasks and give them the opportunity to spend their money as they wish.
- They have the opportunity to learn about saving money. If parents encourage their children to save their money for something they may really want, it can be a great way to teach them how to save at an early age.
- When kids are given an allowance and then they use some of it, they will count their left over change. Giving an allowance encourages counting.
- If an allowance is given when children do chores, they begin to understand the relationship between work and play.
- An allowance can help motivate kids to complete their chores and work hard at getting good grades depending on what the allowance is given for.
Of course, there are negatives when it comes to giving kids an allowance. Some of these cons can be quite damaging when it comes to learning about finances in a healthy manner.
- If kids are given an allowance, they may feel as though they have to do a task to be rewarded with positivity from their parents.
- Kids may start to believe that every chore they complete deserves a financial reward. Regular household chores such as making their beds or cleaning there room may become a battlefield.
- In some cases, kids who receive an allowance tend to care less about money and do not feel motivated to work for it.
- Some kids may compare their allowance to their friends and begin to demand more. You may find out that some of their friends get paid more (or less).
Kids will try to do more tasks (even before asking you) to make more money. Allowances are not the only way to teach kids about finances and money management. It is important that parents talk to their kids regarding the skills needed to manage their own money. Many children that do not get an allowance can grasp the idea that they won't always get what they want.
How do you teach your kids about money management? Share with us!