Allowances: To pay or not to pay... Page 2
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One important thing to keep in mind is that it isn't a question of whether or not
you can afford to give your child an allowance. You are simply giving them money that you
would normally give or spend on them, but now they are in charge of managing it.
3) SHOULD THEY EARN IT?
According to the famous Dr. Spock, as well as many other child experts, allowances should
not be tied to chores. Allowances teach money management. Chores teach family
responsibility.
What if your child decides he doesn't need an allowance one week? Does he get out of doing
his chores? Every time you ask your child to do something for you do you want them to ask
"How much"?
However, if your child is trying to save for a "big-ticket" item, specialists
agree it is fine to offer them a chance to earn extra money through chores that are not
usually required of them. You may just want to require that the earned money go directly
into their savings for that particular purchase.
Allowances are an excellent way to help your child avoid becoming a financial failure
and will instead, give them a healthy understanding of money management. By giving your
child an allowance, you're teaching them how to budget, how to spend wisely, and how to
save. Remember. They will make mistakes. But it's important to hold your tongue and let
them learn from these mistakes. They will thank you for it in the long run.
