People differ in their opinions on giving kids an allowance. I’ve heard both sides of the argument and hold the firm opinion that allowances are a good thing for parents and kids, and here’s why.

The Case For Allowances

Allowances teach kids that work = money. No work = no money.

There are chores that my kids do just because they live here in my house. Things like cleaning your room, and cleaning up after yourself in general. Then there are chores that I pay commissions on that the kids are assigned to daily (such as bathroom cleaning, sweeping, mopping etc).

If they want to earn more money than their allowance pays, there are usually extra chores or projects that can be done.

I want them to learn diligence, and to get the message that work equals money. Isn’t this how it is in the real world?

Allowances are a great discipline tool.

In my house, when a child “forgets” to do their chore, has to be reminded repeatedly, does a lousy job, or just has a general all around bad attitude, finds their allowance docked for that day.

This way, instead of going around screaming about how lazy everyone around here is (who, me?! ok maybe a couple times when I was pregnant), I simply walk up to the child and inform them that they won’t be paid for today’s work.

And then I require that they go back and do it properly. (Sometimes I add another chore on top of it just to teach them that shirking doesn’t pay.)

In addition, I sometimes exact fines for behaviors I’m trying to extinguish, like name-calling, inappropriate language, passing gas at the table, etc.

Allowances help kids learn how to manage money.

My question to the parents who don’t believe in allowances is, how will your kids ever learn how to manage money if they never have any in their hands?

My kids are required to give some money to God, to save some for a long term goal (like a video game. I don’t buy those. Ever.), and some is for short term spending.

To my delight I find that having their own money gives my children more opportunities to be generous.

They often buy gifts for me, each other, their grandparents, and friends. If they had to ask me for money to buy me a present, somehow it just wouldn’t be the same now would it?

I know one mom who pays her teenaged daughter’s allowance via PayPal. The student account is linked to hers, so she can easily log in and keep tabs on her daughter’s spending. The daughter has a debit card that allows her to withdraw money and doesn’t let her to overdraw funds. I think this is a great idea to help her teen learn how to budget, balance a checkbook and be accountable with her money.

Another benefit of allowances is that my kids are learning the value of a buck, and that mom isn’t an endless source of cash.

The phrase “You can wait to get that until you get your allowance” is often used around here!

I also try to teach my kids about the evils of DEBT. They often ask me to let them borrow against their allowance, and my answer, unless there is some really unusual circumstance, is NO. Then I use that as an opportunity to teach my kids about the dangers of getting into debt, how the borrower is servant to the lender, etc.

Do you pay your kids an allowance? Why or why not?

More on kids, chores and allowances here.