Giving Children an Allowance: Pros and Cons
Your children may have started asking for a weekly allowance. If you don't know what to do, weight the pros and cons to decide what's right for your family.
Responsibility is one of the most important values to teach children. One of the ways to do this is by explaining how to manage money by giving children an allowance. You can either reward them for a chore they did or encourage them to save.
However, it’s a sensitive issue. Some parents are in favor of giving children an allowance, and some are against it. You also need to take your family’s economic situation into account.
At what age is giving children an allowance appropriate?
Normally, children begin to handle simple math operations between ages 5 and 7. For example, they can do addition and subtraction. They also need to start working with money and know its value.
This way, they’ll learn about money and how people earn it. They can start buying some candies or sweets on their own. They can also learn how to make purchases without needing help with the math.
Teach children to distribute their allowance
It’s important to give your children freedom. However, the younger they are, the more important it is to teach them to control their spending. For those of us who already use allowances, you may have noticed that your children spend their allowance on sweets the same day they get receive it.
That’s the right moment to start teaching them how to save. You can tell them how to split the money they get every week. For example, if your children want to buy toys, you can teach them to save up.
It’s very important to go with them and watch how they handle this situation. You need to guide them so they don’t make mistakes.
Advantages of giving children an allowance
1. They learn to save
An important advantage is that through an allowance, children learn to save. They learn how to put away part of their money and collect it little by little. Knowing how to save and be proactive is something they must learn. This is especially true if they want to buy a toy or something else.
2. They learn the value of things
In addition, they’ll develop a sense of responsibility and learn to value what they have. They’ll understand that money is earned through work.
In the long run, this will help them become responsible workers when they’re adults. It will also encourage them learn to think logically about how much money they’ll need to get what they want.
3. An incentive to do their homework and chores
Their allowance will become an incentive to do their homework and chores. Remember, assign them chores or tasks according to their age.
“We must give our kids freedom. However, the younger they are, the more important it is to teach them to control their spending.”
Disadvantages of a giving children an allowance
1. It can make them greedy
On the other extreme, children might start to get greedy. They’ll want more and more. They might think that getting good grades or doing chores is only good for getting paid.
2. Feeling that it’s easy money
This may make your children feel like earning money is easy. In addition, they could feel like money will always be at their fingertips. As a result, they may think that parents need to give them money. As we stated before, this all depends on each family‘s financial abilities.
It’s important to know how much allowance to give your children. The best way to do this is progressively increase it as they get older. You shouldn’t put more money into their hands than they can handle.
When you start giving children an allowance is an important issue. In addition, it’s not one you should take lightly.
In general, each child will show signs of maturity. It’s up to their parents to determine whether they’re responsible enough for an allowance.
Remember, allowances are a double-edged sword: you need to know how to manage it for it to benefit your children.