Lesson 2: Allowance...How Much Is Too Much
Paying for chores
Sometimes parents tie the receiving of an allowance to the successful completion of certain responsibilities, such as household chores, grade averages, etc. While at face value the giving of an allowance tied to performance may appear to be a good idea, many strongly discourage this practice, in that it does nothing to teach a child compassion, serving others, and selflessness, but instead fosters a “what’s in it for me” attitude.
Proponents of the money for chores system argue that children who receive money free from any strings attached will come to see money as a birthright and may later find themselves floundering in “the real world” where the receipt of money is most definitely tied to performance.
There is, fortunately, a third option. Once you have decided that your child is ready to learn about money hands-on, sit down together and discuss this momentous occasion. Explain that since s/he is now old and mature enough to begin learning about the proper way of handling money, s/he is also old enough to learn about family responsibilities. Explain that after each birthday, you will all sit down together again to revisit the amount of money s/he receives as an allowance as well as the number and kind of family responsibilities s/he is ready to take or pass on.
The outcome of the talk should be a clear understanding of how much money your child may expect to receive on a weekly basis, the day on which it will be paid, how it will be paid, and what s/he is allowed to do with it. Further, the child must have a clear understanding of the jobs at home which are now to be a part of her/his responsibilities, when they are do be done, how and how often.
This understanding from a very early age on ties together the maturity of handling money with the maturity of taking on responsibility, while not encouraging selfish greed and discouraging selfless acts of service to others.
