Should You Give Your Kids an Allowance?

The topic of allowances can get surprisingly contentious. On one end of the allowance spectrum are parents who don’t believe in the idea. They point out that in life no one is going to just give our kids money; they have to earn it. So they require certain chores of their kids for no pay and then they provide jobs their children can do if they want to earn money. Or, like James and Amanda, in addition to the chores their kids have to do for no pay, there are two levels of paid chores—mandatory and optional. 

Our friends Keith and “Cag” (Caroline) raised their four kids on a no-allowance system where there were mandatory no-pay jobs and optional for- pay jobs. From a young age, their kids’ eagerness to earn prompted them to get outside-the-family jobs, delivering newspapers early in the morning before school, mowing lawns, babysitting, and working in a sandwich shop. Cag credits this system for instilling within each of their kids a “massive work ethic.” 

That’s been James and Amanda’s experience as well. “Our fifth grader will ask me, ‘Can I do this chore? I’m saving for something,’” James said. “That’s been great to see, as opposed to, ‘I’d like this. Can you buy it for me?’” 

In our home, our kids have long been expected to do their part around the house because they’re part of the family. That means taking turns setting the table, clearing the dishwasher, vacuuming, and more. We also provided an allowance for each of our kids beginning at age five because they’re part of the family. 

The size of the allowance was enough to help them learn some early lessons about managing money, such as how to set aside portions for giving and saving. At the same time, we made sure the amount we gave wasn’t enough to buy very much. If they wanted something more expensive, they needed to earn the money by doing extra chores. 

At age twelve, their allowance ended. We figured they were old enough to do bigger paid jobs, either for us or for others, such as mowing lawns or caring for neighbors’ dogs. They are still required to do certain chores because they are part of the family and are still expected to give and save, but these actions now flow out of their early training and their own initiative. 

Keep the Big Picture in Mind 

There are a few interrelated learning experiences going on here: 

Cultivating within our children a strong work ethic Bringing money into the equation to help them connect payment with a job well done Giving them hands-on experience managing money 

There is no single correct way to get money into our kids’ hands. Some families provide an allowance. For others, that word must never be spoken; the only way to receive money is to earn it. I know of kids raised under both systems who have turned out just fine. So don’t stress over this point or think that you have to choose the perfect and right answer to this question. Instead, prayerfully decide with your spouse what sort of chore/money system you will set up. Then implement your plan and stay with it. 

Excerpted from Trusted: Preparing Your Kids for a Lifetime of God-Honoring Money Management.