Should I Give My Child an Allowance?

There are different arguments as to whether or not a child should be given an allowance. Some arguments for it are that the child would be able to learn financial management, that the child can still earn the allowance with chores around the house, and that the child can be motivated with it to help around the house without whining about the difficulty the tasks. Some of the arguments against it are that it will create a sense of entitlement, crush the entrepreneurial spirit, take away the pride a child could feel at having earned her own money, and drain the family of money that the child could be getting from outside resources.

If you want to know whether or not your child should receive an allowance, ask yourself the following questions. They may help you get a better grip on what to do as far as your child is concerned.

• Should my child be given money at all? Most parents will think this an easy question to answer. You may want to consider what kind of people your child spends his time with, however, and consider whether something like drugs and alcohol are things that could be factors in his spending choices. If the answer to the bolded question above is in the affirmative, read on.
• Do I want control over my child's cash flow? If the answer to this is yes, then you may want to be the single source of your child's income. If not, read the next questions.
• Is my child physically capable of earning this money from an outside source? If your child has no physical way to earn money, there isn't much choice for her in whether she can sustain his own financial desires. This is not to say that your child must be athletic to earn money; indeed, many children earn money with some of the less physically demanding jobs. It only means that there must physically be a way for your child to make money.
• Is my child mentally able to earn this money from an outside source? Your child will need to be intelligent in order to provide a service. Again, this does not require excellence in the area of thinking, but it does definitely help if your child is able to stay on task and complete the job which he or she is given.

Once you have asked yourself these questions, you can make an informed decision and help your child grow in the most appropriate direction.