5 Reasons Not to Give Your Kids an Allowance

Don't give your kids an allowance just because you received one. You might not want to give them one at all. I received an allowance as a kid. I can't remember how much it was and can't say that it created any great financial habits.

I got an allowance mostly because my parents got allowances when they were kids. But is tradition a good reason to give your kids money? There might be some good reasons for NOT giving your kids an allowance.

Should Kids Get an Allowance?

I'll share my five reasons you shouldn't give kids an allowance here, but it might not be as simple as a yes or no decision.

Do Allowances Mean Financial Responsibility?

Teach your kids about financial responsibility by sharing yours. No, that doesn't mean making them pay for cable service. 

Talk to them about what it means to manage your money, including the hard decisions. Help your kids get in the habit of saving, not because it's forced but because it allows them to do more in the future.

Money Should Not Be a Reward

Should money even be used as a reward? Giving your kids money as a reward establishes the mentality that you only need to do things if you're getting paid.

Money may not even work as a reward for some kids. They may have no concept of money or sacrifice if you just give them a weekly allowance.

A Better Allowance Idea Besides Money

There are better rewards than giving a child an allowance. Let them pick the family outing for the week, or just tell them how proud you are of their accomplishment.

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