The “Kids Allowance Debate” started a long time ago and
still continues today. Will it help my child grow into a
financially secure adult or will it hinder my child’s ability to
handle finances? Do I give a kids allowance or don’t I?
After thinking about this question and speaking to many
experts (more on that later), here’s my answer: There is
no right or wrong decision as far as a kids allowance is
concerned. All you need to do is find what works for you.
If you were given a kids allowance when you were young,
chances are you will give your kids one. If you weren’t
given a kids allowance when you were young, chances
are you will not give your kids one. The more important
question is whether your financial background put you
on a path for financial success.
What do I mean? To give a kids allowance without any
money training has the potential of ending in a disaster.
We give pencils to our kids so that they learn how to write.
We give books to our kids so that they learn how to read.
Giving money to our kids without their learning how to
save, donate, invest and spend it won’t increase their
chances of ending up on a strong financial ground. It
will decrease their chances. And we don’t want that! ;o)
You want your child to grow up secure with his or her
money. You want them to learn the difference between
buying something he or she needs and buying something
he or she wants. When kids work hard for their own
earnings and purchase items with that money, they
learn respect, responsibility and appreciation. Having
an allowance given, just because, eliminates this
opportunity for kids. A kids allowance promotes a feeling
of entitlement! ;o)
So, I don’t believe in giving a kids allowance. Money is
not something to be expected. It is something to be
earned. I believe in entrepreneurial skills and creative
thinking over a straight allowance. I believe in fostering
financial independence by helping your child find
kid-friendly, creative ways to make money. That
discussion, however, is for another time. ;o)
Some children are born entrepreneurs. Some are not.
Those that are will be excited about earning their own
money. Those that are not will be overwhelmed earning
their own money. So do you give a kids allowance or not?
Every kid needs encouragement. Both those born with or
without entrepreneurial know-how need it. To encourage
your child to find his or her inner entrepreneur (something
I believe in), and if you decide an allowance is the way to
go, then give a small allowance. I personally recommend
this kind of kids allowance and I also recommend that it be
used for needs not wants. Now that’s a discussion for
another day too. ;o)
Kids need to practice with money. No practice with money?
No lessons learned. No lessons learned? No skills learned.
No skills learned? You now have a disaster on your hands.
To give or not to give a kids allowance, that’s the question.
Remember in the beginning when I said I thought about this
question and spoke to experts? Well, I did more than that. ;o)
I put together a special free ebook “Allowance Secrets: To
Give or Not To Give?” where I asked the top 25 “kids and money”
experts, family coaches, and highly successful entrepreneurs
to share their personal opinions and tips on whether or not to
give your children an allowance.
Financial beliefs are formed when we are young. Habits and
belief systems go hand in hand. Habits lead to beliefs about
money and beliefs about money help form habits. Let your
decision lead your children to a solid financial foundation.
Cheers … Amanda van der Gulik … Excited Life Enthusiast! ;o)
Amanda van der Gulik, a home-schooling mom-preneur, who
has been featured on shows, like Disney Radio, is passionate
about empowering our children with life skills and money savvy
so they will be Clever with their Dough and have the positive
self-esteem needed to live happy fulfilling lives as adults. www.AllowanceSecrets.com