KristiLyn Wilkinson, M.S.
Empowering Financial Wellness Program Manager
I think this is one of the most debated topics among financial experts when it comes to teaching children about money, and there are some pretty strong opinions on both sides. The debate stems from two main schools of thought:
1- Allowance should be tied to chores because in the real world you have to work for money and,
2- Allowance should not be tied to chores because children won’t learn to be self-motivated, contributing members of the family if they expect to get paid for everything they do.
If you’ve been here long, you’ve heard us say about 50,000 times that personal finance is PERSONAL. There are often best practices and tricks of the trade to help you be successful, but there is not a one-size fits all that works for everyone- or for every child for that matter. I’m not going to tell you which of these theories is right, because SPOILER ALERT, you can raise money responsible children using either method or by doing a combination of both! What I want to do instead is give you a few things to consider when deciding which approach will work best for your family.
Vincenza Vicari-Bentley, AFC
Empowering Financial Wellness Program Coordinator
Debt can be an abstract topic for children to grasp but it doesn’t mean we should shy away from those money conversations. A few years back, my husband and I were laser focused on paying off our debt. At the time, our child was young, and I found myself struggling to help him understand, in an age appropriate way, why we couldn’t buy that toy or travel to Disneyworld. It hurt much less to scale back on my shopping trips and “extra” expenses than it hurt me to say “no” to some of our child’s wants. I found myself thinking maybe this was a “teachable moment” instead of feeling anxious (and making our child feel anxious) I wanted to frame our debt payoff journey in a way that he could wrap his little head around it without stressing him.
GUEST CONTRIBUTOR: KRISTILYN WILKINSON, USU ADJUNCT INSTRUCTOR
Happy National Selfie Day! Yes, this is a real thing, and yes, we want to celebrate it! A quick google search will let you know that on this day you should take a selfie and post it on social media to celebrate you. Doesn’t celebrating you give you the perfect excuse to treat yourself? Yes, yes it does! But treat yourself to what? “Treat yourself” is a common phrase we hear in society today, and it is usually associated with the idea that you spend some time treating yourself to life’s little luxuries. You know the ones I’m talking about, a pedicure, a night out with the girls (before Covid-19), etc. Of course, the next question that naturally follows is where do I get the money to treat myself on these little luxuries?
GUEST BLOGGER: ELIZABETH DAVIS, USU EXTENSION ASSISTANT PROFESSOR
As part of a parenting experiment, my parents instituted a monthly allowance. As an 8-year-old, I was thrilled to have some money of my own to use however I wanted. I enjoyed the feeling of freedom and endless possibility that came with those dollars. Unfortunately, due to being part of a large family and budgetary limits, it was a short-lived experiment. While actually receiving allowance in my childhood was a short-lived experience, I did learn a lesson that has been valuable to me throughout my adult life and here it is, “having some personal money is important.”
Now that we're a few weeks into the year, is your New Year's budget sticking? Here's an awesome tip that may help you keep that goal rolling through the whole year! Having a personal allowance helps you have the freedom to spend money on yourself but the control to not over do it. Have you established a personal allowed? If so, how has having a personal allowance helped you?
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