You are either for it or against it. There seems to be no middle ground for the childhood allowance debate. But if you’re on the side against ‘paying’ your kids to do chores around the house, you may want to reconsider after reading these five reasons to give an allowance to your kids.
An Allowance Distinguishes Between Wants and Needs
If parents had a dollar for every time their kids tell them they need something, early retirement would be on the horizon. When a kid has their own money in hand they learn real quick how to distinguish between an item wanted and an item needed. The child will soon realize once their money is spent they must live with their purchase choice, so the choices become wiser and needs get met.
An Allowance Teaches Real Life Values
Having their own money to spend teaches kids about budgeting, responsibility, consequences, giving, saving and self discipline. All of which are needed skills to help them become responsible and self sufficient adults.
An Allowance Promotes Trustworthiness
When you give a kid allowance, you are demonstrating to him or her that you trust them. And trust begets trustworthiness. Trust a kid with a few dollars on a regular basis, contingent upon dependable behavior, and they will soon learn in order to keep the money coming they better keep up the trustworthy behavior.
An Allowance Promotes Self Confidence
Successfully managing money results in a magical boost to a child’s self confidence. That same satisfied, self confident and even euphoric feeling we adults get from a balanced check book and all the bills paid is the same emotional feelings that a child has when they reach a savings and purchase goal with their allowance. That self confident feeling of being able to manage a $10 per week allowance in childhood will go with them through teen years and minimum wage paychecks and into adulthood and a six figure income.
An Allowance Stops the Nickel and Diming
If kids don’t have their own money, they will nickel and dime your budget to death. Giving kids an allowance will help you set up a solid family budget and stop the untraceable cash drain that occurs each month from your wallet. Those few extra dollars spent here and there do add up by the month’s end. Give kids an allowance, set up a solid budget and stash the extra bucks into a 401K, and maybe an early retirement will still be on the horizon.