There is a lot of debate surrounding the topic of weekly allowance for kids. Some parents believe it is an essential tool for teaching financial responsibility. On the other hand, some argue that it can lead to entitlement issues and it doesn’t teach kids how to handle money.
Let’s explore both sides of the argument and let you decide what is best for your family!
The pros
It gives kids a sense of responsibility.
When kids are given a weekly allowance, they are usually expected to manage their finances. This can be a great way to teach children valuable money management skills that they will carry throughout their lives.
In addition to learning how to save and budget, kids who receive an allowance also get the opportunity to make mistakes without having to worry about dire financial consequences. They might spend more on something than they can afford or decide not to save any of their money for a rainy day.
It can encourage good saving habits
An allowance can encourage them to save for future goals.
If they want to buy a new toy or go on a trip with their friends, they need to set aside some money each week. This can teach kids the importance of delayed gratification and planning for future expenses.
It can teach kids about giving.
Finally, an allowance can also be a great way to teach kids about giving. When they have their own money to manage, they can start making decisions about how to spend or donate it.
It can be an excellent opportunity to talk to your kids about the causes that are important to you as a family and why it is important to give back.
The cons
While there are many benefits of giving an allowance, there are also some potential drawbacks.
It can lead to entitlement issues.
Some argue that giving kids an allowance can lead to entitlement issues. When children are given money without working for it, they might start to feel entitled to receive money in other areas of their lives.
They might expect to be paid for doing chores around the house or start asking for expensive gifts.
This can be a complicated issue to navigate as a parent, but it is vital to have a clear understanding of your family’s values around money before you start giving an allowance.
It is an added expense for families.
While the amount of money you give to your children each week might seem like a small amount, it can add up over time. If you struggle to make ends meet, it might be better to focus on other financial priorities.
This way, you can avoid any arguments or feelings of guilt that might come along with not being able to give your kids their weekly allowance.
It can take time to manage.
Finally, another potential downside to giving kids an allowance is that it can take time to manage.
You will need to keep track of how much money you are giving to each child and make sure that they are using it in the way you have agreed upon.
This can be even more challenging if you have more than one child.
Giving your kids a weekly allowance can be a great way to teach them valuable money management skills. However, it’s important to think through the potential drawbacks.
Think about your family’s values and priorities around money before deciding whether to give an allowance. And if you do choose to provide an allowance, make sure you are prepared to manage it in a way that works for your family.
