Stop the Allowance to Beat Debt?

by | May 11, 2009

Finances

Dear Dave,

We're trying very hard to get out of debt. We were wondering if it would be a good idea to put giving our kids an allowance on hold until we get everything paid off.

Erin

Dear Erin,

Don't stop giving them money! What you're doing can be a great lesson for your children. But you definitely should stop calling it an allowance. In my mind, there's a lot of victim mentality attached to that word. You're not "allowing" anything, you're rewarding success!

Kids should learn at an early age that money is connected to work. Even a kid who's in kindergarten is old enough to begin doing some age-appropriate chores around the house.

We did this kind of thing in our home, with all of our kids, but we called it a commission. If they did their jobs, they got paid. If they didn't, they didn't get any money. It didn't take long for them to make the connection!

- Dave

*For more financial advice, please visit www.davesays.org.

Comments and feedback can be sent to feedback@ldsliving.com