There is a lot of controversy about whether or not to give kids an allowance, and if so, how much. I believe that by giving kids a good allowance we can start teaching our kids good MONEY
MANAGEMENT SKILLS, which is something that they need to learn in order to succeed in life. If we can't manage properly they money we get, we will never have enough. We will always complain about not having enough money. On the other hand, if
we have good money management skills, it won't matter how much we make, we will still apply the basic principles and always have enough no matter how much we bring in each month.
I have learned some principles over the past few years that
have helped our family live debt-free. We have payed off our condo, and we always pay off our credit card bills each month so we don't get any accrued interest. What are these principles? They are ones that I learned in a book several years ago:
1. 10% of household earnings goes to an"Offering" account. This can be given in the church or to any other organization to which God prompts us to give.
2. !0% is labeled "Investment", which means anything that will potentially make
you money. I do not believe investing in the stock market is very wise. My personal belief is that investing in a network marketing business that offers products that we are passionate about is the best place to invest that 10% and so that is what I do, and
what I teach my kids to do.
3. 10% goes to a "Savings" account. This includes saving part of it for yearly vacations and part for retirement, along with anything else for which we want to save at the moment.
Our expenses need to be kept down to 70% of our monthy income, which includes entertainment, of course, not just monthly bills.
So, how much is a good amount to give them?
We give them approx $50 a week, but they get paid $100 on the 1st day and the 15th day of the month.
I have them pay partially for the classes they want to take, which include gymnastics and dance. That way they get a taste of what
it means to pay monthly bills. 10% automatically gets taken out for offering so they do not spend it, 10% goes to an investment account (my son already is using that account money since he started his own network marketing business with Young Living) and 10%
goes to saving for a car (though it doesn't amount to much, that gives them the basic idea of what it means to save for something big for the future; it helps them apply the financial principle). They get to spend the rest of their money in whatever way they
desire, and many times that includes purchasing clothes they want (my daughter loves going shopping with friends, but she always finds good bargains on clothes she loves)
Do they do
chores? Yes they do, but that is honestly separate from money management skills. Doing chores teaches them to be responsible for their own living space. It also teaches them to share in household responsibilities without complaining. What they
do depends on their age. The older they get, the more chores around the house they need to do.
I don't know if you agree or not with me on my position of giving kids a good allowance, but that is my take on the subject and I think it teaches them good money management skills so they can learn do live independently of their parents once they turn 21 and beyond, not codependent of us.