reply on: Kids Allowance: Cash v Debit Cards \ stacker news ~Personal

343 sats \ 6 replies \ @go 22 Feb \ on: Kids Allowance: Cash v Debit Cards Personal_Finance

My success:

No allowance. Chores expected.

Seasonal outside work also expected. If you help out around the house, then you are free to do work for neighbors (who usually pay more than I ever would!)

The wins:

They don't see me as a piggy bank
They start seeing opportunities for money
They end up having great work ethic and listen to instructions from others well.

What we avoided:

The constant gray area of whether you pay the allowance in full because they didn't do some of their chores, or you get the promise to finish the chores another day, or just pestering for them to do their chores "or else" they won't get paid. Bleh. Count me out.
Any sense of entitlement. My kids genuinely think we're poor because we live by a budget and don't throw money around at things we feel like.

71 sats \ 2 replies \ @hodlpleb OP 22 Feb

I agree that allowance should not be tied to chores l, but without allowance are you teaching any financial literacy? If you’re relying on them to earn money on their own, their financial education depends on them being driven to earn money.

0 sats \ 1 reply \ @go 22 Feb

I wouldn't throw my advice around on much, but this has been such a big success in our family that I'm putting it out there. Let's just say, as an analogy, that the first year of homeschooling isn't quite the dreamy big win you want it to be either. Shaping expectations and motivations take time

71 sats \ 0 replies \ @hodlpleb OP 22 Feb

I think I get the homeschooling analogy, but not sure.

I never got allowance (and my parents were terrible with money). Eventually I got a job because I needed some spending money - but didn't develop any good money habits until I was ... in my 30s? I had nobody guiding me and every dollar I made burned a hole in my pocket. I actually racked up a lot of credit card debt when I was 18, because I did not understand anything about savings or the implications of debt.

I look at allowance as a tool for learning about money and to develop a healthy relationship to money.

10 sats \ 1 reply \ @SpaceHodler 22 Feb

My kids genuinely think we're poor because we live by a budget and don't throw money around at things we feel like.

I like that! Reminds me of that meme where the poor guy wears the most expensive clothes. I can definitely relate through some people I know.

31 sats \ 0 replies \ @go 22 Feb

We have a mantra that the kids roll their eyes and repeat on demand: “What the difference between a rich man and a poor man?” “A poor man has spent all his money”

0 sats \ 0 replies \ @KLT 22 Feb

This is great, thank you for this advice. My kid is only 4 but I’ve been curious as to an ideal way parents handle this.