Optimal Finance Daily - Financial Independence and Money Advice 3154: Why I Won’t Give My Kids An Allowance by Andy Hill of Marriage, Kids and Money
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May 25, 2025 Andy Hill challenges the norm of giving children allowances, promoting a system known as 'chore money.' This approach ties financial rewards to effort, encouraging kids to work for their earnings. Hill shares key benefits, like teaching kids about saving and wise spending. The conversation explores how children can develop entrepreneurial skills early on and engage in meaningful discussions about money. By linking chores to finances, parents can foster responsibility and a strong work ethic in their children.
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Money Comes From Effort
- Giving children an allowance without effort teaches money comes just for existing, which is unrealistic.
- Linking money to chores helps kids grasp the real-world value of hard work and earning.
Teaching Money Limits Through Play
- Zoe brought $5 to a play place and used it for games until money ran out.
- Her parents upheld the rule of no more money, teaching her money's limits despite her initial displeasure.
Earn More By Doing More
- Let kids earn more money by doing extra chores to teach value creation.
- Parents should participate with children during chores to bond and model work ethic.