Allowances For Kids

Should allowances for kids be tied to chores? Many say children should learn how to manage money from an early age, but not necessarily by getting paid for routine chores.



I have heard of different scenarios regarding kids and allowance. Ultimately, it is your decision to make based on your family and purposes. The following are a few different methods as well as my opinions of each.

1) Allowance that is tied to chores or routine duties

Allowances for kids can be an important part of children learning how to manage money. But, personally, we don't intend to pay our daughter for doing routine, household chores. After all, We don't get paid to do our chores.

Chores are a family and household responsibility. Using money to coerce a child to complete chores can promote a wrong attitude about it and can be missing the whole point of giving them money which is to learn how to manage it. It also clouds the value of requiring that they do chores without monetary reward such as character, maturity, accountability, priority (work then play), dependability, home organization, and consistency.

When they grow up and are supporting themselves and their family, they won't get paid if they don't work, but jobs are jobs and chores are chores.

They will still have chores outside of their career. Help them now to appreciate and be efficient with completing chores with a good attitude.


2) Allowance given, separate from routine chores & may earn extra money by doing extra work

This thought is that allowances for kids should be consistently given as a set amount of money with the distinct purpose of teaching them how to manage it. The child is responsible for completing all assigned chores and may earn extra money by doing odd jobs that require extra effort, but this allowance is not tied to the chores.

This teaches two values; money management and household responsibility, as mentioned above. It opens the door to money as well as the freedom that comes by living responsibly.

As children grow up and become teenagers, they can work a steady job or run a small business, to save for larger expenses and learn beneficial skills. These entrepreneurial ventures may even lead to a long-term business.

If you choose to follow this rule, it would be a good idea to give the child their allowance in coins and/or small bills so they can easily divide up the money into different uses: Give, Save, Spend, etc.

You'll notice I put "Give" first. We strongly believe that giving should come before all else. My husband and I have made giving a top priority in our finances since 2001 and we have been "hooked" ever since. :) ... We call it financial, biblical stewardship.

Some things just need to be done. The motivation for doing them comes from knowing that if we don't do them, we will be surrounded with disorganization and that would make life more difficult. As far as children, there is a loss of privileges involved in order to train them to be responsible and diligent.


3) No allowance, responsible for routine chores, may earn any extra money by doing extra work

In this scenario, the child is responsible for their chores and if they want extra money, they will have to earn it. Now, you will have to decide, in this case and in other cases, just what your child will have to pay for by themselves and what you will pay for or if you will go in half-way on certain items. (Clothes, games, meals outside the home, gifts on special occasions)

Again, some things just need to be done. If you don't see the need to supply your child with a no-strings-attached flow of steady income (other than the requirement to show they can be trusted with it), you can still teach them how to respect money and use it wisely and ethically.


4) Make up your own mix

Which ever view you have on allowances for kids and the way you go about teaching your child responsibility, keep in mind what you want the results to be, both now and when the child is an adult. Think about what you may be potentially teaching your child.

If you pay them for doing daily chores, will they always expect to "get something" and be disappointed if they don't? Will the method you choose instill in your child an appreciation for hard work, attention to detail, and self-sacrificing love?

Whatever decisions you plan to make in life, think first about the consequences. If the prospects look good for a good result, move forward. If not, rethink your plan.

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