When Do You Stop?
That’s an interesting question about when do you stop paying your kids an allowance? It’s an interesting question, since we seem to be creating a generation of Kippers, but when does it stop?
In my case I am still paying my daughter in University her allowance, but it was capped when she left University. She has been using it as her “mad money” to maybe go out with or whatever (I don’t ask how it’s being used, but I do see it go).
Am I disabling my child’s financial education by continuing this free money? I think my opinion is Yes and No, given this daughter actual has worked for her money (hard at a local Grocery Chain) and she has helped out with University Costs as best she can, so I don’t resent paying the money, but am I somehow teaching her that Mum and Dad will always be there (and is that idea a bad one)?
I think it also depends on what you view the Allowance as (in terms of a financial tool). Are you teaching kids about how to manage money, so you are giving them some money to learn from, or are you teaching your kids that you must work to earn money in this world (unless you buy a LottoMax ticket, in which case it’s not quite the same)?
My guess is I may end this subsidy, once my kids graduate, and hopefully I’ll be able to help them in other ways once the graduate, but I am always game to hear what other folks think about on this subject.
Back To School
A few other quick views on back-to-school and RESPs
- RESP: Back to School Reminders for September.
- So that is what $50,000 looks like It is crucial to know the final goal for an RESP.
- Back to School (Monetary Nightmare) the start of September can be expensive.
- Back To School and RESP Time is the time to think about this. When else if not the start of school?
- University, Who Pays ? It isn’t written in stone that you must pay for your kids’ education.
- Kids Allowances (redux) is this concept dead? Are allowances passe?
- Money Hemorrhage in August? (aka the Scream). September can be a costly month.
I actually don’t really give my kids allowance. They do chores around the house but I suppose since I never got paid to do those things I don’t pay them either. However, I do give them money as a thank you every once in a while. I just don’t want them to think mom is always going to pay for everything but as long as they do well in school and continue with their education, I am more than happy to do so. 🙂
Crystal
My daughter received an allowance until she began working. Both because I recognized she needed to have some money of her own to do things with (go out with friends, etc.) but also to be able to learn financial skills. Otherwise, there would be requests for cash every time she wanted to do something, leading to the potential for arguments. This way, she had to learn to budget like the rest of us.
If she wanted a raise in allowance, she had to provide a rationale why. She usually succeeded in getting what she needed.
As a child, I got $1 a month, but was forced to bank it. I never saw the dollar, I didn’t go to the bank, and I didn’t see the passbook until we were moving and the account was closed. What was the point?
Teaching negotiating techniques, hadn’t thought of that as a skill to teach, good idea!