Giving Kids Allowance: A Parent’s Tool for Financial Education

When it comes to giving our children allowance, many parents don't buy into the idea because they feel there's no need for it since they already provide everything the kids need to them. Do I agree with the need to give my kids allowance? What is the message I'm trying to pass across by giving it, and what lessons do I hope to teach them if I give them allowances, or am I the type of person who doesn't or won't give my kids allowance? All of these questions and many more are what I'll provide responses to based on my opinion below.

So to start with, am I the type of parent who'll give or not give my children allowance? It's worth noting that despite the fact that I'm providing everything my children need, I'll still give them allowances, and I've got a reason behind why I'll be giving them the allowance. The reason is so that they can purchase some things they see and like, without always having the need to come to me for money. The major reason is so I can teach them from a tender age the value of money, the principle of saving, investing, and the like. If I don't give them allowances and then guard them on how to go about using them, they might not know how to deal with money until they are in the real world, and by then the world will teach them in a much harsher form.

Many children grow up not knowing the actual value of money and how to handle it, and by the time they grow up, they spend anything they earn or have lavishly, and when it finishes, they become stranded and struggle. I don't want my kids to experience that for long, although I know it can teach them lessons and build their resilience, but then I can do that in my own little way by giving them allowances and helping them understand the consequences of each way they use it, if it's to buy things, save, or invest.

I don't think giving them allowances is a stretch; many times my niece and nephew have approached me about their desire to buy gifts for their teachers, parents, and the like, and I advise them on how to save so they can gather enough to purchase gifts to surprise their teachers and parents. Even though the very first time they approached them, I gave them money to purchase that particular gift, subsequently they learned from my advice and started saving each time people gave them cash gifts. A few months later, I even ended up getting a gift from them via their numerous savings from their allowance and savings.

That's to show that it's fine to give our kids allowance; we just need to still educate them about how to handle it and watch how they go about it. Even if they squander the first one, let them face the consequences so they can learn and do better going forward. No one is too small to learn, and allowances are another way to train and teach our young ones.

All photos are mine.