Should Children get an Allowance?

A child holding a jar of coins

via Wikimedia Commons

A child holding a jar of coins

Should kids get an allowance for doing chores or tasks? There are many pros and cons to giving children an allowance. Many pros can be teaching your kids about budgeting and learning to value money but allowing an allowance can be bad for parents and children.

To begin with, allowing kids to have an allowance will teach them how to budget. It also teaches kids about finances, responsibility, and the consequences of poor financial decisions. They also learn the relationship between work and pay if the allowance is tied to chores. This allows them to have a great future career since it helps them understand the correlation between work and reward. An allowance is a good way to teach kids the value of money and promote a sense of responsibility. The purpose of an allowance is to teach them how to manage their money for future purchases. An allowance can teach kids that money isn’t free. Giving them chores will allow them to work hard for what is necessary. 

The amount of money a child should get depends on how old they are. One dollar for how old the child is is how much they should be receiving as their allowance. A child doesn’t need that much money, depending on what they will buy or what they are saving up for. Kids as early as age five can start learning to save money. Even if they are older, it’s not too late to teach them the value of money.

There are some downsides to allowing children to have an allowance. An allowance may undermine the importance of contributing to the family. Kids may also not want to do any chores or tasks if it doesn’t involve money. They might not be motivated if money isn’t involved and will not want to do their tasks. Paying kids to do chores teaches them that working for money isn’t fun. It may also be challenging for parents if they are on a budget and don’t have enough to give their children. It’s another task for parents to manage since they might be busy with work and will have to keep track of how much allowance they give their kids.

Allowing kids to earn money is great. They will be able to learn about finances and budgeting at an early age. As well as being able to buy their own necessities without having to ask their parents. They will also be able to learn to work hard for what they need most.