I was asked to take a side in a controversy – should kids be required to work for their allowances or just receive them without strings?
Educating your children about how to handle money is not only one of the skills that you must teach your children, research shows that children form their primary money habits by age seven. Like it or not, we are teaching our kids how to feel about, talk about, and use money, by our very example.
The Bible instructs us to start early! Proverbs 22:6, “Train up a child in the way he should go: and when he is old, he will not depart from it.” So, yes, I believe an allowance should be conditional upon completing chores.
A fundamental lesson of money is that we all are instructed to work to cover our expenses, if we are physically able. And two major benefits of working for an allowance are learning the value of our effort and learning to manage money early in life.
My wife Ann and I taught our boys that when they earn money they needed to give first, save second and spend last. Ann used simple three-ring binders with three clear pockets inside, marked Give, Save and Spend. In the early years, we allocated 10% to giving, 70% to saving and 20% to spending. These amounts change over time.
The discipline of giving is best learned as a child and with the practice of putting God first with our money, we will also learn to put Him first in our hearts. Consider also doing a Bible study as a family that teaches Biblical financial principles so that you can talk about money from God’s perspective in a relaxed environment. Crown has some wonderful resources to help.
