A survey by KRC Research shows how many parents give their children an allowance, and the percentage who pay up for good grades.
If you thought allowances were a thing of the past, think again. A survey conducted onine by KRC Research shows that a significant number of parents say they give their kids an allowance, 67 percent, in fact.
The poll also found that 49 percent of parents give their children money for good grades—talk about an incentive.
I recently spoke with financial experty Ron Lieber, author of the book The Unspolied Child.
He had some interesting things to say about allowances:
“Allowance is for practice, and money is something we want our kids to get good at. I think the allowance should be given out without any conditions except that the money gets used responsibly, that you don’t lose it or burn it, and that you don’t buy anything or do anything with the money that is on the family’s banned-items list. As long as you follow all those rules, the allowance is yours.”
He also had a tip for parents who are tired of their kids nagging them for things:
“The quickest way to nip that in the bud is to actually double your child’s allowance if you can afford it, which may seem like a counterintuitive approach. But once it’s clear to them that they have this sum of money—but that until further notice, every single thing that they want as opposed to things that they need is going to have to come out of the allowance—then there’s no reason to bug you anymore because they know that the answer is going to be, “No, that’s what the allowance money is for.” Whatever that allowance is, they have to make that last and parcel it out and make tradeoffs around the things that they want the most.”
Author Dave Ramsey has a different approach when it comes to giving kids an allowance.
When asked about some money management tips for kids and parents he said:
“Number one would definitely be to get your kids to work. Don’t just give them an allowance. Kids need to learn that money comes from work, not from mom and dad’s back pocket. The money-and-work connection gives a child a sense of dignity. Second, show them that it’s important to give. Giving is the antidote to selfishness; it combats entitlement. Third, lead by example. We always say, ‘More is caught than taught.’ But money is never just about money. It’s about strong parenting, setting boundaries, and giving your kids the dignity to become responsible, self-supporting adults.”
Allowances can be a great learning tool for kids, but it is ultimately up to the parent to decide whether or not to give one, and whether or not it should come with a set of conditions.
RELATED:
