Kids and Allowances

Kids and Money / Friday, April 20th, 2007

Thanks to The Simple Dollar I was made aware of this interesting conversation about kids and allowances.

We have never done allowances with our kids. I’ve tried a couple of times but, frankly, it was a pain. My kids seem to have more than enough money coming into their lives from things like birthdays, Christmas, babysitting and dog sitting jobs, etc. I don’t really feel the need to provide an allowance on top of that.

I do agree that allowances can be a great teaching tool but I guess I don’t think they’re the only teaching tool. I have lots of conversations with my kids about money and they both have savings accounts. I listen to Dave Ramsey in the car quite a bit and that has provided us with lots of jumping off points for conversations.

My daughter is now in high school and is making noises about applying for her first job. I imagine that will provide many more teaching moments. I seem to remember a line from The Cosby Show back in the 80’s: “Who is this FICA guy anyway?”

2 Replies to “Kids and Allowances”

  1. The point of an allowance is to educate about money right? You are already doing that in the two best ways possible, imho. You are a living example of educating yourself, and you have put the responsibility on them to figure out how to make their own money, which I think is the best thing we can do for our kids. Thanks for the link, I love hearing what other people are doing to educate themselves and especially our kids!

  2. I personally never had an allowance. I’m tighter with my money and budget more than either of my parents. My father is horrible at saving and it’s a huge stressor between my parents.

    I on the other hand am just naturally frugal. I only ever got a few dollars at my birthday or Christmas.

    Maybe I’m weird, but I don’t think allowances are the be all and end all of childhood learning about money.

    I also have a really close relationship with my parents.

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