Just giving kids money sends them the wrong message about being responsible and working hard. They need to earn it.
After my post about how hard work is the best thing you can teach your kids, many asked me how we instill this in them (including a radio show I was on). It’s a great question. I gave a few examples, but now I have even a better one: quit giving them allowances.
Before crucifying me about how we need to teach our kids about money, hear me out. I completely agree that our kids need to be much more money savvy than we are. Instead of half the crap they teach in junior high and high school, personal finance should be a requirement from the seventh grade straight through to graduation. I think it’s that important. Just giving them money sends them the wrong message about being responsible and working hard. They need to earn it.
No one just gives you money. You have to go to work and earn the hell out of it. Your kids should do the same. If they mow the lawn, maybe that’s $5-10, cleaning up dog poop in my house will net you a cool $1-2 depending on the “load.” This teaches them that they receive payment after doing a job—and doing it well. If my kids do a half-ass job, I make them re-do it. It might seems harsh, but it’s better we do that now than have them lose a job down the road when it really matters
Giving people something of value without earning it is a great way to make them lazy, unappreciative and never satisfied. It’s not only a problem when raising kids; it’s also a problem in society. Able-bodied people need to pay their own way. When they receive something for a job well done they’ll not only respect the money, but they’ll also respect themselves.
Doing away with allowances and rewarding kids for a job well done solves two problems: it teaches them to work hard and to respect money. When they go to buy that Xbox game or a killer Nerf squirt gun and are able to plunk down money they actually earned, they’ll walk a little taller and feel better about themselves. This creates proud people.
And we need more proud people in this world.
—Photo GoodNCrazy/Flickr
Steven, I totally agree. They should be taught to save and build wealth. I think teaching them about compound interest as they get older is huge. Free money!
S. Gallo – I also agree that they should have chore to do as members of the household. They should be paid for anything “extra.” Like I always say: they live in houses, not hotels.
I agree that children should learn how to use money. I agree that a work ethic is needed. What I find though is that it’s not just giving an allowance is not the issue. The issue is that children need to understand that at this time in history we use money for basic needs. I don’t know what your religious/spiritual background is, but mine comes from a Mystical Christian perspective. It sounds to me like you are saying that we should never give money to a child, even as a gift and that life is to be earned. Game counsels,… Read more »
I would add to this sensible opinion that paying kids to do chores sends the message that helping out around the house is not madatory. my nine-year-old knows she folds clothes and sweeps the apartment buidling’s driveway—because it has to be done.She gets a meager allowance to learn how to handle money.