08/12/2025
Let's talk about allowance for kids.
In our home, chores (aka participation in the family dynamic) are unpaid work. The way I vacuum the floors, my husband mows the lawn, we all bring our dishes to the sink after meals - these are the things that we have to do to keep the household running smoothly. Our family? We're a team. And we aren't paying for participation.
Allowance is given unconditionally to learn money management, budgeting, and financial responsibility. It is not tied in any way to the chores the kids do, it's an entirely separate system. How can we expect teens & young adults to be smart with their money when they've never been taught? Allowance helps them learn the value of a dollar. You want a new squishmallow? That's 6 weeks worth of your allowance. Is that worth it to you? A Nintendo Switch? You'll have to save ALL year for that. Financial literacy is the most important responsibility they'll have as adults.
We started this with our kids around the age of 5, but it's not a hard and fast rule. Your budget will dictate the amount you're able and willing to offer, but we chose to do $1 per year of age. So, when they're 5, they got $5 per week. Mostly loonies when they were little, but now it's paper money 😂
We set clear expectations around what their allowance could be used for (treats, toys, souvenirs on vacation) and what we would pay for (all necessities, extracurriculars, and some extras like an annual pool pass or shopping dates). They can also barter extra household responsibilities they wouldn't normally be expected to do (like weeding my garden) if they're trying to earn extra money for something. Just like in the real world, if you need more money, you have to work for it.
Normalize talking about money. Saving. Spending. Investing. Donating. What will a car cost when they're 16? What will an apartment rental cost? Down payments, first & last months rent + damage deposit, insurance, gas - we need to teach them now if we want them to make good choices later.
Thoughts?
