Why Parents Shouldn’t Pay Allowance to Their Kids
Smart Money Parenting
Introduction
Exploring the pros and cons of giving children allowances and suggesting alternative methods for teaching them about money.
Should you give your kids an allowance? In today's episode, hosts Chad Willardson and Scott Donnell discuss the dos and don'ts of giving your kids an allowance. They also share practical money management strategies that are way better than giving your kids money they didn't earn.
- Scott and Chad start the conversation by sharing their thoughts on whether parents should give their kids an allowance.
- Chad reveals he's never been a fan of allowance because it's basically paying your kids for the mere fact that they exist.
- Although Chad and Scott agree that an allowance is an easy way to teach your kids money management, it's not the best.
- According to Chad, kids need to know that they have a role to play in the household - and they won't be paid for everything they do.
- For Scott, a great way to incentivize your kids to be more proactive in the house is to make it clear that not all tasks are created equal - some tasks warrant more pay than others.
- Chad highlights how his children earn money by going above and beyond their daily responsibilities.
- Chad is a big proponent of making your kids pay for their extra-curricular activities. If they want to go to Disney, they must earn it.
- Scott and Chad agree that parents should start teaching their kids money management as soon as they learn how to count.
- Scott believes the easiest way to ruin the relationship you have with your kids is to buy their love with money.
- Chad highlights the benefits of empowering kids to become the hero of their own financial stories.
- Scott explains how parents who never give their kids the opportunity to earn, manage, and spend money end up raising financially illiterate children.
- Scott shares how parents can take kids down the path to financial literacy using the GravyStack app - an app that harnesses the power of play to teach kids how to earn, save, invest, and share money.
Mentioned in This Episode:
Smart, Not Spoiled: The 7 Money Skills Kids Must Master Before Leaving the Nest by Chad Willardson
Scott Donnell on LinkedIn - https://www.linkedin.com/in/donnell-scott/
Chad Willardson on LinkedIn - https://www.linkedin.com/in/chadwillardson
Scott Donnell on Instagram - @imscottdonnell
Chad Willardson on Instagram - @chad.willardson
Scott Donnell on TikTok - @imscottdonnell
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