Are Childhood Allowances Awesome or Unnecessary?

I'm somewhere in the middle on this one. An allowance can teach them about money to a degree, but I think it kind of loses value when the parents give it because they also buy everything else the kid needs. It also makes it seem a little easy to get a hold of, whereas cutting the neighbor's grass gives them a better attitude about motivation to get it (you have to go out and work for it rather than wait for me to offer it). I've also seen kids just ignore chores if they didn't feel like they needed the money. I never got an allowance because my mom couldn't afford it, so I did chores because the chores needed to get done. There was no reward beyond keeping everything alive and clean (lived on a farm and took care of sibling and cousins). I didn't expect a reward for something I should already be doing and if I needed money I would help paint a fence, mow a lawn, babysit (didn't like it at all), haul someone's hay, feed someone's horses, whatever anyone needed. I also gained a lot of weird little skills that way (I can put a dead bolt in a door and paint a house like a pro now XD).

Maybe smaller kids can start out with an allowance from parents, then as they get older, show them that they will have to have the motivation to go out and look for ways to make money. That way they learn about money, learn nothing is handed to them, and they grow up with better cleaning/chore habits since they know it needs to get done even with no reward.

If done properly they can teach your child to use their money wisely

helps teaches about money

its an awesome thing everyone at some point will need money :)

both.

This should have been necessary not awesome. Kids ned to learn about money so giving them some is not bad as long as they do something for it. Then if your poor they might have to wait or work for it somehow. Just don't put them too work.

It worked well for me

So are chores

Somewhat unnecessary for kids at a really young age but all in all it teaches how to manage, maintain and store money. Its a great life lesson to teach a child.

when they are attached to chores. Our society is too much of a hand out society to teach children they get something for nothing

I can't think of a better way to prepare a child for their financial future.

It depends on how they are used though. If used as a tool for learning how to treat your finances at early age... good. If used for rewarding something kids should already be doing... not so good. In my opinion.

Neither answer expresses my opinion, but awesome comes the closest.

If used as a teaching tool, allowances can teach a child that there is no such thing as a money tree or unlimited checkbook, that to gain money, you have to do something to earn it and that no one "owes" you anything just because you're you.

An allowance can teach patience (saving for a long term goal) and responsibility (if you fail to do the tasks assigned you, you don't get paid) and can teach real life realities (unless you happen to be a liberal).

How can you say 'no?'

It teaches the kids the value of money.

It depends on whether you're a kid or an adult...

Didn't get the choice I wanted ;-( We have a point system that allows the kids to earn points that they then can redeem for merchandise they want. However, this points need to be earned. It teaches them that nothing in life is for free.

I never had an allowance. The only way that I received money was by doing chores for neighbors like cutting the grass or from my own personal jobs. I believe it has helped me to be more responsible with money because instead of using someone else's money, like my parents', to buy things I've usually used my own. So, instead of impulsing buying, I weigh the options more to make sure that I will really be happy with the purchase.

Done right, its a low-cost way for parents to teach thrift and financial responsibility. For me, it was "Do I want to blow my allowance this week at the convenience store on baseball cards and beef jerky, or do I want to wait a few weeks and get that new Super Soaker that just came out?" (Yeah, back when super soakers were a new thing). Instant satisfaction VS delayed gratification. If more parents did this, more kids would grow up learning how to handle money.

I believe in allowances. I got one but I had chores that I had to do to earn that allowance. I di the same thing with my boys. It teaches a good work ethic and responsibility.

Turn 16, get a job, learn on your own. That's what I did.

Same here, but school should come first, and if the job gets in the way of grades, then the job has to go.

Sure. Most jobs like that are extremely flexible though. Once you turn 18 it gets harder, unless you did what I did, ambulance work which was fun.

Teaching the concept of balancing their own money ( no matter how small )

SPEND.... high ticket items
SAVE ... future
GIVE ... Charities

i never got one, it taught me to help others and not expect anything , just do it because you care not what you will be rewarded.

Parents today hover around their kids and give them everything they want so why add an allowance.

I never had an allowance growing up. My mom took care of me and made sure I had the things I needed. My mom didn't have much money, but my mom would occasionally reward me if I did something deserving of it (like good grades, for example). A lot of people are saying that an allowance helps kids manage money. I disagree. They are too young to understand that. When they get money, they want to spend it right away. Besides, kids do not need to learn how to manage money. When they're a teenager, then you can start teaching them that responsibility, but a child does not need to know that.

Look at the statistics of debt the average college graduate has - just credit cards, not even student loans - and then tell me that kids don't need to learn how to manage money. It's a life skill; the younger the better.

I am great at managing money and I had no allowance as a kid. I learned to manage money when I was a teenager and got a job. I only have one credit card and it's been paid in full. I have no outstanding debts because my mom taught me how to manage money well... when I was a teenager. Kids don't understand credit cards and those types of responsibilities.

Just an FYI from a retired money manager, having everything paid off and a credit card at zero keeps your credit score down.
To raise your credit score, when you make a purchase that you need (and have the cash money to buy it), put it on your credit card. When the bill comes, pay all but $30 on it to keep a balance. The relatively low charge for the interest on such a small balance will give you a rating on your credit of "Paid as Agreed". "Paid as Agreed" gives you a better credit rating than "Not Used".

Yes, that's exactly what my mom told me and that's what I've been doing. I have great credit. When I said "paid in full", I meant that I keep it so I have no outstanding balances. When I use my credit card, I don't rack it up so much that I can't pay it off.

It teaches them a work habit.

it kind of teaches them about finances in the home.

They are not unnessary in themselves but should be earned not just given as you teach lessons in life to children and this is one of them.

:) ;)

They teach children to budget and be careful with their money.

They teach you that you'll get money by doing nothing. That isn't good to teach children. It's okay as long as they do extra work for the money, but not just regular chores.

I earned all of my money since the first time I even cared about money. I did chores, I helped out. I never had a set allowance.

They can be a very useful tool in teaching your children responsibility, as well as a way to show them what the rewards of a hard day's work can really be.