Should you give your kids an allowance?
aliko-aapayrollservices.com - Small businessess from 1 to 80 employees outsource your payroll management to us and let us worry about your payroll processing.
RSS Follow Become a Fan

Delivered by FeedBurner


Recent Posts

Tax changes to expect when you’re expecting
2016 Tax Tips for 2015 Filing Year
From Proprietorship to Corporation - When is the Best Time to Incorporate?
Tax Specialists Brief your Clients About CRA Fraud And E-Mail Scams
Bank of Canada cuts rates again

Most Popular Posts

Help your teenager build credit responsibly
Being an Executor of an Estate
Anti-Aging
Student Line of Credit
Principal Residence Exemption

Categories

aliko nutrition store- isotonix
aliko payroll services
canada revenue news and videos
canadian news
CPP ,OAS RRIF ANNUITY
Cross border Tax
Disability awareness and Benefits for disabled
estate planning
FINANCIAL LITERACY
HEALTH & NUTRITION
Home Car Insurance
Income Splitting Strategies in Retirement
INVESTING
kids and money -set your children up for financial success
life insurance
on line safety tips
online safety tips
PAYROLL
Real Estate - Investments / Retirement
RETIRE HAPPY BLOG
Retirement planning
SAVE YOUR MONEY
Save your money
SERVICE CANADA NEWS
small business planning
Tax Information for Students
tax news
tax planning
tax tips.ca
Tech news
TFSA

Archives

January 2016
July 2015
May 2015
April 2015
February 2015
December 2014
November 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013

powered by

MY BLOG

Should you give your kids an allowance?

should you give your kids an allowance?
 
 
 
 
Should you give your kids an allowance?
 
 
Written by Jim Yih17 Comments
 
 
 
 
I’ve always felt it is important to teach my kids about money.  My kids are young and to this point I have not put an allowance system in place.  At home, we have implemented reward-based systems where they get acknowledged and rewarded for good behaviors.  We’ve implemented things like a kindness calendar where they get stars every time they do kind acts.  But to this point, the rewards have not been attached to money.
My oldest son is now 7 and I think it’s time to implement an allowance. I think he’s ready.  I think my 5 year old is ready too.  Being a financial professional, I have never been afraid to talk to my kids about money.  In fact, it think it is so important to talk to my kids about money at an early age so they develop the right foundation sooner than later.
They are neat kids because they do understand money and the difference between saving, spending and sharing.  Both Robbie and Connor have shown they have a bit of the saving gene.  That being said, they are also being influenced by friends and TV and are starting to want things that other kids have.  I think it’s time to teach them about a means to earn money to buy things they want.
Suze Orman does not believe in allowances
Coincidentally, I was watching financial guru Suze Orman talk about allowances on TV.  In her opinion, most parents utilize allowances the wrong way.  She says “Most parents give their kids allowance based on age.  For example, at the age 10, the child gets $5 per week; At age 12, they get $7 per week; At age 15 they get $10 per week …”
Suze believes this entitlement based allowance program is the wrong approach because the kids are not learning anything about money.  Most kids who get an allowance think they get it ‘just because’.
Give your kids money based on the work they do
Suze thinks children should not get paid for tasks that are part of the responsibility for living in a home, which might include cleaning a bedroom or making the bed. Parents don’t get paid for making dinner or washing the dishes, and there are responsibilities that everyone must cover to keep a household running smoothly.
When it comes to allowance she thinks we need to stop calling it an allowance.  She prefers to call it ‘work pay’.  If they want money, they need to work for it.  This is how the real life works and better that they get used to it at a young age.
“Work pay” could include other things like washing the car, vacuuming and mowing the lawn.  She recommends attaching a dollar value to a chore.  For example, washing dishes for the week might be $3, mowing the lawn might be $5, etc.  She then says you can let the children pick chores they want to do.  This exercise teaches them many important things — how to talk about money, for one. It also starts to teach them negotiating skills, and it introduces the concept of work for pay.
What should I do?
There are a lot of different theories on allowances for kids, which I will continue to explore in future posts.  I must admit I like the idea of earning money for certain things because this is how it works in real life.
Parents, please share your perspectives on allowance and your experience with me and with others.  I’d love to get your thoughts!
 
 
 
 
 
 
 

0 Comments to Should you give your kids an allowance?:

Comments RSS

Add a Comment

Your Name:
Email Address: (Required)
Website:
Comment:
Make your text bigger, bold, italic and more with HTML tags. We'll show you how.
Post Comment