To Give Or Not To Give A Kids Allowance?

By:  Amanda van der Gulik

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.

Tags: , , , ,

2 Responses to “To Give Or Not To Give A Kids Allowance?”

  1. amir
    December 22, 2010 at 12:39 pm #

    That was a great read.

  2. sheenaeast
    December 23, 2010 at 8:50 pm #

    I believe that giving kids allowance can help them learn the value of money. I was having trouble deciding how much allowance should I give my 6 and 9 -year old and my friend recommended It has an allowance calculator to help you figure out how much to pay and you can track allowance and chores on their site. My kids love to see their money in three colorful jars SPEND,SAVE and SHARE jars online in their own account. Now my kids are starting to understand the value of money because they are managing it themselves.

Leave a Reply