Your Child's Allowance
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 these kids feel entitled!
There was an interesting article in the Wall Street Journal last month, Why Children Need Chores by Jennifer Wallace. According to the article "giving children household chores at an early age helps to build a lasting sense of mastery, responsibility and self-reliance". So you can help build your kiddo's self-esteem and teach them about money by giving them an allowance tied to chores!
Children need to have money of their own, to spend, to save and to make mistakes with. But as parents we don't want our kids to make mistakes. 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 found an allowance calculator online to help figure out how much you should give your kiddo. It's an interesting exercise for they ask you what kind of an allowance you got as a kid.
A word of advice here, if the kid has more week than money do not give them an advance on their allowance.
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You can hear Dee Lee's expert financial advice on WBZ NewsRadio 1030 each weekday at 1:55 p.m., 3:55 p.m., and 7:55 p.m.
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