• Home
  • GET THE BOOK
  • Start Here
  • Blog
  • Free Resources
  • Shop TBM
  • Courses

The Budget Mom

Real Women. Real Life. Real Finance

  • Home
  • Products
    • Live Rich Planner
    • Budget By Paycheck
  • Blog
  • FREE RESOURCES
  • COURSES
  • GET THE BOOK
  • Shop TBM

A life you love on a budget you can afford.

Here on TBM®, I provide you with simple, easy-to-follow solutions to help you budget your money, pay off debt, save more, and crush your financial goals. But more than that, I give you the tools to start doing the things that matter most to you, on a budget that actually works!

Should I Give My Child an Allowance?

October 27, 2021
Family & Money

Share
Pin42
Share
Tweet
Email
42 Shares

Giving your kids an allowance is a great way to teach them money management skills at a young age. Learn the pros and cons of an allowance and how to get started.

Do you give your kids an allowance? If not, you’re in good company because the majority of parents don’t. A poll from CreditCards.com found that 40% of kids under the age of 18 receive an allowance. 

There’s a lot of conflicting advice out there regarding giving kids an allowance. Some people say an allowance is necessary to teach kids how to manage their money. Others claim it could lead to feelings of entitlement and that you should tie the allowance to chores.

Personally, I think you can give your kids an allowance, but it doesn’t have to be much. I started by giving my son spare change at a young age so he could begin developing a basic concept of money.

It’s crucial to teach kids money concepts, but you also don’t have to bust your budget to ensure they get an allowance. If you’re on the fence about giving your kids an allowance, this blog post will provide you with some ideas to consider.

Featured Post

3 Spending Habits That Are Setting You up for Failure

Read Post

What Are the Pros and Cons of an Allowance?

Pros

Giving kids an allowance can help build their foundational skills around managing money. Here are some of the biggest benefits of giving kids an allowance:

  • Teaches kids the value of money: Giving your kids an allowance can help teach them the value of money at an early age. This is a skill very few children learn in school, and it will benefit them their entire lives. Whether or not you tie it to chores, it’s good for kids to learn how to receive and manage their money.
  • Allows them to pay for non-essentials: Once kids have access to their own money, they can start to pay for some of the non-essential items they want, like toys and video games. They can also begin saving for more expensive items they want.
  • Helps them understand about work and money: If you give your kids an allowance based on the chores they complete, this can help them start to understand the relationship between work and money. 
  • Provides a safe opportunity to make mistakes: We all make financial mistakes when we’re learning how to manage money. It’s better for kids to make these mistakes early in life when the risks are low. Once you’re an adult, financial mistakes come with very real consequences, like debt and poor credit. 

Cons

While there are a lot of advantages to giving kids an allowance, there are some downsides to consider too: 

  • Can undermine voluntary family contributions: Some people argue that tying an allowance to chores could undermine voluntary contributions. Some chores should be completed simply because you’re a part of the family, not for earning a financial reward.
  • Could be a financial strain: For some parents, giving multiple kids an allowance of $10 per week could be a strain on their budget. 
  • Requires a lot of parental supervision: I think one of the biggest mistakes many parents make is giving an allowance but not providing guidance on how to use it. The CreditCards.com poll found that one in four respondents received no financial guidance growing up. Children do not naturally understand how to save and spend their money — you have to provide them with structure and teach them these skills.

Tips on Getting Started

If you want to start giving your kids an allowance, here are some tips for getting started:

  • Start at a young age: Many parents don’t start giving their kids an allowance until age eight or older. But research shows that kids can grasp the concept of money by age five. I think it’s a good idea to make money a part of their life at a young age. The earlier they begin learning about saving and spending, the more likely these skills will stay with them as they grow up. 
  • Provide a lot of guidance: Just giving your child money to spend isn’t enough by itself. You need to provide a lot of guidance if you want your kids to learn good financial skills. You can give your kids the independence to make their own choices, but talk to them about those choices.  
  • Start small: An allowance isn’t really about the amount of money you’re providing — it’s about the financial lessons the money is teaching. If you’re on a tight budget, don’t feel like you need to give your kids a big allowance. Even $1 is enough to start teaching money management skills. 
  • Teach kids to budget: An allowance is a great tool to teach the concepts of budgeting and saving. Once they have a monthly allowance, they can begin to understand how to budget for the things they want. 
  • Help them see their money growing: An allowance is also a great opportunity for kids to set goals and save for the larger purchases they want. Giving kids a piggy bank where they can store their savings is great because they’ll be able to watch that money grow week after week. 
Featured Post

4 Money Saving Challenges for Small Budgets

Read Post

The Bottom Line

When you give children an allowance, it’s really just a tool to teach them good money management skills. Don’t be afraid to start small and allow them some independence while still providing a lot of guidance along the way.

Do you give your kids an allowance? If so, how and at what age did you get started? Let me know in the comments!

Share
Pin42
Share
Tweet
Email
42 Shares

Filed Under: Tagged With: ALLOWANCE, BUDGET TIPS, CHILDREN

Previous article:
« 7 Ways to Save Money Black Friday Shopping
Next article:
Why I Recommend Pen to Paper Budgeting Over Apps »

Comments

  1. Amber Ruloph says

    October 29, 2021 at 9:03 am

    We were JUST discussing giving our son an allowance! He is 4 and a half and very helpful around the house! We are going to start giving him a small allowance every week as a reward for being so helpful and it will also help us because he then becomes responsible for saving up for those toys he wants when we go to the store. I think it’s important to teach kids money management young because I wasn’t and have struggled as an adult. Now that I’ve found your budget by paycheck I’m finally able to get a hold on my own finances and I want my son to see and understand how important that is! Thank you for all you do!

  2. Joanne Waddington says

    October 29, 2021 at 9:15 am

    This is something that I have been thinking about a lot lately. I have a daughter who will be 13 in a couple of weeks. I want to give her an allowance but I struggle with what it should cover i.e, cinemas trips with friends, clothes, swimming with friends etc. If I set an amount and she spends it and her friends want to do something I would feel so guilty that she couldn’t join in. I really need some advice.

  3. Justina Mercer says

    October 29, 2021 at 11:42 am

    This is so helpful! I had very little guidance regarding money growing up and at 40 I am both trying to figure it out and teach my kids at the same time. Thank you for the guidance and motivation.

  4. NN says

    October 31, 2021 at 4:53 pm

    Great article! I give my 7 year old $7 a week and my 3 year old $3 a week. It isn’t tied to chores. It’s just for practice. Other than birthdays or holidays, they have to save their own money to purchase their own toys.

Hello, I'm Kumiko, but everyone just calls me Miko. Welcome to my blog, The Budget Mom. I am an Accredited Financial Counselor® , and mom to a rambunctious boy. Come along with me as I strive to live a life I love on a budget that I can afford. Read more about me.

RECENT YOUTUBE VIDEO

The Budget Mom

The Budget Mom
It’s time for another Real Life Budget. I asked my readers to submit their REAL information. Real spending, real debt, and real savings goals.

I am taking those real-life numbers and showing you how I would organize and budget that information using my Budget By Paycheck® Method.

If you would like to submit your budget information to possibly be picked for a Real Life Budget that we will show on YouTube, please reach out to budgets@thebudgetmom.com.

Diane is a single mom who is a Database Administrator for an IT Department at a local college. She lives in Queens, NY, and eventually wants to move to a lower-cost of living area in the future. 

Diane submitted her information because she is struggling to organize and tackle all of her larger short-term goals.

CHAPTERS:
00:00 Introduction
02:15 Why & Personal Story
04:20 Income 
04:37 Fixed Expenses
05:48 Variable Expenses
06:31 Debt
07:53 Savings Goals
10:18 Budget By Paycheck Method
14:51 My Recommendations

➡️ HOW I TRACK MY SPENDING: https://bit.ly/3aIe89I
➡️ HOW TO USE A BUDGET CALENDAR: https://bit.ly/2IzF2Vj
➡️ FINDING YOUR WHY: https://bit.ly/3aJUryj
➡️ THE BUDGET MOM'S FINANCIAL FREEDOM STEPS: https://bit.ly/3cfJXsp
➡️ HOW TO GET STARTED WITH THE CASH ENVELOPE METHOD: https://bit.ly/2vQJaO5
➡️ HOW TO CREATE A PLAN OF ATTACK TO PAY OFF DEBT: https://bit.ly/2wDETxF

ABOUT ME

Kumiko Love is a single mom who empowers women everywhere to regain control of their financial lives. An Accredited Financial Counselor with over nine years of experience in the finance industry, she founded The Budget Mom, a community of millions of women on a path to financial fulfillment.

She's also the creator of the wildly popular Live Rich Planner® and Budget by Paycheck® Workbook. Love has been featured on Good Morning America, the Today show, CNN, CBS, ABC and in USA Today, US News, World Report, Huffington Post, Money Magazine, Parents Magazine, the Washington Post, and Real Simple. She lives in Spokane Valley, Washington.

YOU CAN FIND ME AT:

📝 WEBSITE: https://www.thebudgetmom.com
📘 FACEBOOK: https://www.facebook.com/thebudgetmom/
📸 INSTAGRAM: https://www.instagram.com/thebudgetmom/
📌 PINTEREST: https://www.pinterest.com/thebudgetmom/

GET STARTED

➡️Start Here: https://www.thebudgetmom.com/start-here/
➡️Courses: https://courses.thebudgetmom.com/
➡️Free Resources: https://bit.ly/2PDmTHz
➡️GET 10% OFF my popular Budget-by-Paycheck Workbook - Coupon Code TBMYOUTUBE https://bit.ly/3FEdZFp

Soundstripe License Code: LBWMAQPEPWYVFKT3
Load More... Subscribe
Free Resource Library

Recent Posts

  • To Pay Off Debt or Not to Pay Off Debt: The Pros and Cons of Using Home Equity
  • The Secret to Personal Finance I Never Learned About in Business School
  • Don’t Overpay for TV and Internet: How to Shop Around for the Best Deals
  • 4 Simple Tricks to Stick to Your Grocery Budget
  • Celebrate Without Breaking the Bank: How to Save for Special Events

Blog Categories

Amazon Associates Disclosure

The Budget Mom, LLC is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com.

  • Cart
  • Shop Policies

Start With My Friday Newsletter

Every Friday I send you a short helpful email with my popular Friday freebie. Join my 500k+ subscribers!

About

  • Home
  • ABOUT TBM
  • Contact
  • Start Here

Important

  • DISCLAIMER
  • PRIVACY POLICY
  • Subscribe

Favorites

  • YouTube
  • Blog
  • Live Rich Planner
  • Budget by Paycheck

Start With My Friday Newsletter

Copyright ©2023, The Budget Mom®
This website contains affiliate links, which means that if you click on a product link, I may receive a commission. This website is a participant in the amazon services llc associates program, an affiliate advertising program where I earn advertising fees by linking to amazon.com.
  • How financially fulfilled are you? Take this 2 minute quiz to get your score!
    Click Here to Start