BOSTON (CBS) – I do believe if you can afford it kids should get an allowance because having money of their own gives them the opportunity to learn about saving, spending, and delaying gratification and perhaps work ethics.
When my kids were little, I believed allowances should not be tied to work that they do around the house because I expected my kids to want to help around the house. Ha! It wasn’t until I tied their allowance directly to house work did they begin to want to help around the house.
Some studies have shown that the “No Work for Allowance” theory has produced a generation of entitled kids with no work ethic. I’m not convinced that is the only reason!
Children need to have money of their own, to spend, to save, and to make mistakes with. Yes, mistakes! But as parents we don’t want our kids to make mistakes. We coddle them. We protect them. We bail them out if they run out of money. Don’t do it!
The experts recommend giving a dollar amount to match their age. So a 10-year-old would receive $10 a week. Now if you expect them to also buy their lunch at school, pay for entertainment, and pay dues to the cub scouts from their allowance you may need to increase it.
I did find an allowance calculator to help figure out how much you should give the kiddo but in playing with it a dollar amount to match their age seems appropriate.
A word of advice here, if the kid has more week than money do not give them an advance on their allowance.
Make sure your sons and daughters have equal opportunity to learn about all of the necessary chores it takes to run a household. Make out a list that is age appropriate. My daughter mowed the lawn and spread bark mulch and my son learned to cook and clean up which lead to a cooking career.
Dee Lee is a Certified Financial Planner who received a diploma in Financial Planning from Boston University and her MBA from Simmons College. She dissolved her successful financial planning practice for individuals so that she could devote all of...