Should I give my kids an allowance?
If you’re able to, yes!
But try not to think of it as an allowance, which is basically a grant (free money). Instead, use the concept of an allowance as an opportunity to teach your kids about earning a wage. Because long before your child gets to the point of figuring out what to do with their money, they must decide what they’re willing to do to acquire it. In other words, they must come to a point where they recognize and embrace the importance of work.
This is a critical starting point. We know that God himself works (Genesis 2:2; Philippians 1:6), that God created man to work (Genesis 2:15), that “the laborer is worthy of his wages” (Luke 10:7), and that “if anyone is not willing to work, then he is not to eat, either” (2 Thessalonians 3:10).
So first and foremost, talk to your kids about the importance of work and then allow them to earn money (their “allowance”) by giving them age-appropriate work to do. It’s also a good idea for the amount they earn to be age-significant and correspond to the work done. For example, $1 for picking up their toys at the end of every day is likely significant to a five-year-old. On the other hand, your ten-year-old may need to earn $5 or $10 for a larger project to experience the same sense of accomplishment.
As you provide these opportunities for your kids, be sure to distinguish between the work that earns them a wage and the work expected simply because they are part of a family that loves and serves. Both types of work are essential; ongoing conversation and practice are vital to nurturing this distinction.
Now that your kid has earned some money, you have an opportunity to remind them that what they earn belongs to God (just as their whole life does), and to coach them in the possible ways to steward their money. Keep it simple and stick to the basic categories of giving, saving, and spending. These buckets are easy for kids to wrap their heads around, and they summarize well the choices before them for the rest of their life. And find a helpful way for them to track their income and expenses, whether a simple ledger on a piece of paper, an easy-to-use app on a device, or something else. In doing so, you will be leveraging their allowance to teach them about budgeting, the importance of which cannot be overstated.
As you guide your children through this process, you’ll notice that every kid is different. Some will be “savers,” possibly because they have an eye on some long-term goal, or maybe they’re nervous or fearful about spending their money and having less. Some will be “spenders” with big holes in their pockets and no thought for tomorrow. Others will fall somewhere in between. As their parent, you need to understand your kid’s temperament, understand God’s word on stewardship, and ask God for wisdom in bringing the two together. Here are some tips to help you along the way:
Consistency: Set up work for your children to do daily, weekly, or monthly. This gives them regular practice. Also, pay them according to a predictable schedule (a “payday”). Such structure helps manage expectations and begins to instill in them the rhythm of life they will encounter as adults.
Responsibility: The fact that your kids earn their money and aren’t simply given it will help guard against an entitlement mindset and encourage them to take responsibility for what they do with their money. After all, we know that when we work for something, we typically handle it with more care.
Adaptability: As kids grow, so should their work, and so should their pay. Some kids will take the initiative, ask for more work, and ask for a raise. Others will need you to coach them up in this regard. Be prepared to be flexible and creative.
An allowance is just one tool in your parenting tool belt when it comes to teaching your kids about stewardship, but it can be a powerful one!