Your Allowance for Kids...
Are You Teaching Important Skills or Spoiling Them?

Considering an allowance for kids? Are you concerned that it might just spoil them and teach them to expect a hand-out for simply existing?

This can be personal finance and parenting challenge.

Your kids allowance can be a powerful teaching tool. With an allowance, you can teach them skills they can use their entire lives. It is up to you to make your kids allowance more than just a hand out.

Financial Freedom expert and seminar leader Dave Briggs shares insights from his upcoming book about raising financially responsible children.

This allowance for kids question is from our complete list of financial freedom FAQ.

Dave’s insights into giving an allowance kids can teach financial responsibility in your family too.

As adults, they will understand the value of what you taught them through their allowance. They will thank you for your wisdom and likely pass it on via their kids allowance also.

Allowance for Kids Question:

My question has to do with the best way to give an allowance for kids. Could you give me direction about how to implement an allowance in a way that will help teach our kids how to be wise with their money?

The key with allowance for kids is to create a situation where they have the ability to obtain money, so they can learn to use it wisely before they leave your home and head out into the harsh realities of the “real world.”

However, having money is only half the equation; teaching them how to earn money is just as important.

I suggest choosing from two different methods of handling allowances: the Paycheck Method and the Commission Method.

The Paycheck Method seeks to model the real world in that they receive their allowance every week in exchange for completing well-defined tasks around the house … just like it will be for them someday when they have a job in the marketplace. They would receive the same amount every week.

The Commission Method seeks to model the real world in that they only are paid when they complete specific tasks successfully … like someone living on commission.

You would make available a number of regular jobs around the house that they can choose from a pre-determined list.

Each job would have an amount of money associated with it and your children could earn as much as they wanted. (Note that these jobs are above and beyond the normal chores that all children should have for just being a part of the family that are not done for money.)

Note- Dave’s upcoming book will give great detail about these two methods of allowances for kids.

If you would like to be notified when it is published, please contact us and we will let you know.

At Financial Freedom Trail, our personal finance information can help you in many additional ways.

We can teach you many valuable money management skills, including how to live within your means, manage your money, reduce and eliminate debt, save money, reduce expenses and earn more.

Please take a look at our Home page to see some to the other ways that we can help you achieve financial freedom.

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