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Last week’s interview with Ron Lieber and his book The Opposite of Spoiled had some practical advice about helping kids to be comfortable with both how to handle money and teaching them to be thoughtful with their finances.
One thing we didn’t go over about last week was allowance. Honestly I believe it deserves its own space, which I hope to cover today.
Financial gurus and plenty of parents subscribe to the idea that tying allowance to chores teaches kids valuable lessons, one of the biggest being the connection between work and pay.
With a regular schedule, kids learn to at least budget until their next allowance.
However there is a drawback to attaching allowances with chores – kids can get the idea that they should be paid for all of their household responsibilities.
Or some kids don’t really care about the money and just want to skip on chores.
What do you do then?
Ron Lieber suggests a different approach with allowances. Treat them as a teaching tool for money while leaving essential family chores as cleaning their room, meal preparation and clean-up as a part of their routine.
Your kids can still learn about the value of hard work by offering extra pay for special projects and assignments around the house.
What if kids shirk their responsibilities? Lieber proposes taking away a privilege – internet, phone, or screen time.
Resources on Kids and Allowances
Want to learn more? Here are some resources to check out:
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I’d really like to hear from you. What do you think about allowances? Do you have allowances? How do you handle them in your home and why? For those who have been doing it for some time, how has it been going?
We can look back at our parents and get an idea of how they shaped us. So how can we make sure we’re giving our kids a good start with money?
In this episode Ron Lieber, NY Times columnist and author of the newly released The Opposite of Spoiled, will share the latest research to help parents raise kids who generous and smart about money.
We get into:
whether allowances should be tied to chores
how parents can encourage gratitude
how early you can begin with financial foundations
If you want to learn more, I highly recommend that you check out The Opposite of Spoiled as it does a thorough job of tackling some of the trickier situations of raising a financially savvy kid.
Support for this podcast comes from partners like Personal Capital. Easy to set up & easy to use. You can have all your investments, income, and expenses all pulled into one place.
