Should Kids Get Allowances
The Top 7 Reasons
question of whether allowances are right or wrong, is one
that has been argued for many generations. Now its
your turn, as a parent, to decide whether or not an
allowance is the best way to educate your child about
financial responsibility. There are many reasons given on
why a regular payment of money to a child should or
shouldnt be done ultimately I believe there
is no right answer, it is up to each individual family to
decide what is the best option for them. Through many
years of working with parents and educators, these are
the top seven reasons I keep hearing on the question of
why should kids get allowances.
1. They learn to be wise with how they spend their money.
It may help to teach them how to prioritise their
spending, & learn from an early age what things are a
waste of money.
2. They learn how to save money. Having a regular amount
of money, may make it easier for them to establish good
saving habits, as a certain percentage of the money from
each payment can be placed into a savings account/piggy
bank. Without an allowance, any money they receive, may
simply be spent, with nothing going to savings.
3. They learn how to donate their money. A certain
percentage of their money can also be allocated to
donations to the needy, hopefully encouraging your child
to be more thoughtful of others, & not greedy with
4. They will learn how to budget their money so it lasts
between payments. Eventually, most children will learn to
be careful how they spend what limited money they have,
so they dont run out of money. This will only
happen, if the parent doesnt give in to the initial
whining for more money when the mistake is first made!
5. They can learn to make mistakes with small amounts of
money. Kids will learn how to manage their finances
responsibly far quicker through being allowed to make
mistakes themselves (and suffering the consequences),
rather than being told how they should be managing their
money by someone else. Parents need to be there to guide
their children on how they should spend their money, but
not dictate (unless there could be serious consequences
from their mistakes).
6. They may stop nagging you for money. The idea is, if
they are receiving a regular amount of money, and they
have a good understanding of how to budget it then they
will never run out of money, so wont keep pestering
you for more. Realistically, it will probably never put a
complete end to the nagging for money, but it should
7. You may end up forking out less money. If you sit
down, and add up how much money you give your child
during the week & how much you spend on items for
them (e.g. clothing), it may actually work out cheaper to
give them an allowance, and make them responsible for a
lot of their purchases.
As I mentioned earlier, an allowance isnt
necessarily the best option for every family, but these
are some of the reasons why many parents & educators
believe an allowance is the only way to go. Some families
though, may not have enough room in the family budget to
provide their children with a regular payment, or may
simply not believe in it for their own personal reasons.
Either way you choose, I have seen with my own eyes,
children from each side of the fence who have grown up to
be exceptional money managers, and likewise children who
seem to have no idea. Ultimately, it comes down to how
much guidance a child receives from their
parents/guardians on money whether through an
allowance or not.
Incoll has helped show thousands of parents how they can
help their children manage money more effectively. Visit Kids Money Tips to find heaps of great tools -
printable charts, worksheets, play money, games - new
items added regularly.