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5 Mistakes to Avoid for a Successful Allowance System
- May 11, 2020
- by Chelsea
Why You've Got to Listen to This Episode...
Allowance is one of the core ways parents can teach their kids about money. But it’s also one of the places where we can make mistakes if we’re not intentional. We know it’s not as simple as handing our child money every week or every month and walking away. So how do we avoid allowance mistakes and set up a successful and empowering system instead?
In today’s episode, I’m going to be covering 5 of the most common allowance mistakes parents make and how to turn each one into a positive action. By knowing what these mistakes are, you will be in a better position to help your child learn healthy money management that aligns with your family’s core money values. We’ll cover how to avoid making saving money feel like a punishment for your kids, how to let them make their own money mistakes, and how to decide whether or not they’ll receive an allowance as a result of completing chores.
Don't Miss These Highlights!
- [05:46] Mistake #1: How not starting allowance early enough can cause your kids to miss out on vital money lessons
- [07:18] Mistake #2: Making the idea of saving money feel like a punishment & what to do instead
- [11:18] Mistake #3: Why being inconsistent teaches your kids the wrong lessons about money
- [14:10] Mistake #4: Not letting your kids make their own money mistakes & tips to help them when they do
- [17:20] Mistake #5: How to help your children handle outside money messages
- [20:29] How to flip the script & turn each of these mistakes into a positive action that builds a successful, empowering allowance practice
Links & Resources Mentioned
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1 thought on “5 Mistakes to Avoid for a Successful Allowance System”
It’s sort of tied to chores in our house.
However, there’s no set list and there are no specific assignments. We have two girls that are 15 months apart but ages 12 and almost 11. Basically, they get $1/age/week, BUT, they have a “salary cap” of $10/week. They used to be required to save half, but since they are older and tend to want to do more activities and the things they want are little more expensive we have made it mandatory to save 20%.
The rule is you do what you’re told, when you’re told, with a good attitude. I likened it to a real job. Your boss will tell you to do things you don’t feel like doing, but to be considered a valuable employee you still get those things done and you do it with a good attitude. If we get any growling, back talk, wait a minute, eye rolling, foot stomping or door slamming they are required to pay us back a dollar for each instance. In the first few weeks they each had slip ups (the attitudy youngest basically lost 3 weeks in the beginning, but slowly her attitude got better!).
We feel really their job is school. However, it’s important that they know how to do things to take care of themselves and their home. We also need them to practice blowing all their money on stupid things when it’s only $8 vs $8000 in adulthood. When there are little purchases I leave it up to them and when they run out of money that’s it, but if they want something more expensive we talk about the decision thoroughly. Do you need this item or just want it? Is it worth spending 6 weeks of your allowance on it? Will it bring you some joy? Is it an experience you will remember forever? Etc.