5 good reasons to give your kids chores and allowance

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Build financial literacy

For a lot of us, allowance is our first experience with money. An article from Business Insider titled “Why you should give your kids an allowance” interviews a children’s financial education author, Lori Mackey. Mackey gives this example, “You can’t expect a child who hasn’t learned their ABCs to know how to read.” “Parents don’t expose their children to any concept of money, but expect them to go out and manage a checkbook and get a job and not go into debt.”  (read the rest here)

 

Because really, who wants to raise an entitled human being?

In her article titled, “Should you give your kids an allowance,” Denise Cummins, Ph.D., describes students or employees who have been taught the correlation between work and achievement (through the concept of allowance). “Finally, there are the students or employees who fully appreciate the causal relationship between hard work and performance, and between performance and grades or remuneration. These are the students who don’t believe they are entitled to anything just because they belong to the class or because they show up more often than not. If they want a better grade, they ask what they can do to improve their performance in the class. If they want more money, they ask for overtime, or put in extra effort to improve the efficiency of the business so that it will be more profitable. I don’t know about you, but this is the kind of adult I wanted my children to be.” (article here)

 

Instill Lifelong Habits

Teach them good habits now that will last a life time! An article in Time reads, “Just 1% of parents surveyed by the American Institute of CPAs say their kids set aside any money. Encourage better behavior in a younger child by establishing separate piggy banks for spending, saving, and giving, then let her help choose a charity to donate to. Help tweens or teens set a specific savings goal, and consider a “Mom and Dad” match of, say, 25% up to the first $100 saved, Dwight suggests. Nothing will get a child (or adult) more excited about saving than the promise of more cash.” (article here)

 

Teach Them Responsibility 

I know when I bought something with my own money I took better care of it. Vered Deelew, a contributor to Moneying, a personal finance blog, gives this example, “Now that the children have their own money, they learn responsible behavior and taking responsibility for one’s actions. For example, one of my kids used to always forget her jacket at school. When she was younger, there wasn’t much I could do except buying her new jackets. Last year, I told her that she may lose a jacket ONCE and we will buy her a new jacket, after all we all make mistakes, but if she loses it more than once, she would have to participate in the purchase of a new jacket. (article here)

Leverage

Parents giveth and parents taketh away. Abbi Peters contributes to the popular women’s lifestyle blog, SheKnows, and says this, “Allowance can be contingent upon grades, behavior, chores, or anything you choose. It’s a great enforcer, because kids love getting money. If you write out a contract for allowance, when your kids don’t comply with the rules, you can just point to the chart and say, sadly, ‘Sorry.’ Try to sound like you mean it.” (article here)

Piggybank gives parents a comprehensive platform to integrate chores, allowance and early financial education into everyday life. To learn more about Piggybank or to sign up, visit getpigggybank.com