The Top 3 Questions that Parents ask about Kids and Allowance
Parents have 3 main kids allowance questions. (see Answers below) But, what parents want to know is, "Will an allowance teach my kids about respecting how money works (money makes more money), so that my kids will use (save, spend, donate) money wisely?"
YES! An allowance can help kids learn everything there is to know about money WHEN allowance is only a part of the teaching.
This lens answers your basic kids allowance questions - and your more complex concerns about kids and money. You'll be ready to make decisions about what to do next to teach your kids great financial wealth habits.
I am the author of The Kids' Bank Book, which goes well beyond allowance, and the Squidoo lens, How to Teach Wealth Habits to Your Kids. (I wholeheartedly recommend that you first get more info about allowance basics on this lens, and get the free "5 Tips" email, and then, later, take action and use my Kids' Bank Book system to teach wealth habits to your kids.)
TOP 3 Allowance Questions & Answers
Which one brought you here? Just click on the arrow to rank your most pressing question - we want to know! Different questions brought you here? Tell me by Submitting a Blurb at the bottom of the page and I'll do my best to answer it - maybe I'll even add it to this list!
1
Should I give my kids an allowance?
YES. Why? Lots of reasons. If you start while your kids are young (less than 8 or 10), the allowance money will provide the money for them to use a money management system that you set up. Second, it breeds trust and responsibility. Third, it allows your child to develop wealth habits without complicating it by the whole teenage-work thing. But, never tie punishments to allowance.1 point
2
Should I give my kids an allowance in exchange for chores?
NO. Now, some say that this teaches kids that money comes from hard work blah blah blah - but it doesn't. And, anyway, do we want our kids to be hard working factory workers when they grow up - or - to be indepently wealthy joyful contributers to our society using their best talents, and work smart? [A: The latter.] So, HAVE CHORES. Everyone in a family needs to care for the home - and be rewarded by personal satisfaction of being part of a great team. It fosters the teamwork habit.0 points
3
How much money should I give for allowance?
The amount is not as important as deciding what your child is going to do with it. 20 cents or $20 works just as well. The main thing a child needs to do with allowance is to use it in a SYSTEM that you give your child for money management. (see more below - the 25% to each bank system) [Note that if you give your child a hefty allowance, then he/she might also now be responsible for buying his/her movie ticket. But, it will be sure failure if you do it on a haphazard case by case basis.]0 points
Show Kids This
WATOTO
Then watch the
Attitude of Gratitude
begin . . .
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The Key to Wealthy Kids Requires More than Just an Allowance (or a Job)
- Approximately 2 middle, upper middle, and upper class generations have grown up with allowances - and they're accumulating as much, if not more, consumer debt as their parents did.
- When dealing with kids and money, without a clear, concise system, we rely on mantras about "saving pennies for a rainy day," lectures ("what did you spend all of your money on?"), or in-store battles ("why don't you use your own money for this?" "because I was saving it for a new bike, not this small toy that I want"). Chaos and confrontations rule the day.
- When you combine that lack of system with a probably already financially-stressed-out parent, it spells disaster. Most parents want to have more financial abundance than they now have. Some of those are dedicated to an adult system to achieve their financial independence goals. But few of those are prepared to translate that adult system into a system that kids can use - or, rather, WANT to use.
- So, you need (a) a system that dictates what kids will do with their money, that also empowers them to make some of their own money decisions (it sounds contradictory now, but it really isn't), and (b) a way to educate your kids about that system (oh, and have your kids EMBRACE it).
- The kids' money management system (or what I call a "wealthy habits system") should teach your kids how money works, which needs to include:
What ROI is
What compound interest is
Investing money
Saving money
Spending money
Donating money
Do you give your kids an allowance?
I want to know what lens viewers to so that I can give you the best info possible about allowance.
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Kids & Money - Teaching Wealth Habits to Your Children
Would you like your kids to learn Abundance and Wise Money Management now, when they're young? Would you like your kids to build strong habits that will help them save, spend and donate money wisely?
Go To The Kids' Bank Book Now to get the e-book
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Want to Learn More about "The Kids' Bank Book?"
Get lots more info @ my Squidoo lens about Kids & Money and The Kids' Bank Book-
Kids and Money: How to Teach Wealth Habits to Your Kids
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Aha! You've joined the ranks of those wise parents who have realized that they'd like to spare your children the burden of repeating your money mistakes? (or, of the poor money lessons that you were taught as a child?) Do you want your ki...
Best "How Money Works" and "How to Build Wealth" Book
All in One
1
Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money--That the Poor and Middle Class Do Not! by Robert T. Kiyosaki
You can't teach your children about how money is used to build wealth, if you haven't yet mastered the info yourself. Get it in book or on CD - but get it! Postpone the allowance and take a "personal" day from work to invest the time that will make it all worthwhile.0 points
Best Adult Wealth Systems
Including tips on Parenting Your Children about Money
If you weren't a semi-financially-stressed-out parent who was trying to give your kids a better financial start so that they wouldn't struggle like you are when they got to be your age, you probably wouldn't be here. A few financially independent parents visit here because they want to pass along the wealth in the best way possible, but they're not my average lens viewer.
So, here are the best resources for you to get your own system. The Commitment to the System is within you!
Have a favorite? Vote it to the TOP. Have a favorite that is not shown? Add it to the list and I'll review it!
1
Rich Dad - Games
You MUST play and master Cash Flow 101 if you are not yet financially independent. [It includes 3 CDs about CashFlow101 lessons.]1 point
2
Rich Dad Forums
Staying connected to others on the same path is crucial to your success! Rich Dad Forums cover lots of beginner and advanced investing questions, Cas...0 points
3
Crown Financial
Crown Financial has done an excellent job at putting together various tools for a great adult system - software, online tools, books - that is similar...0 points
Blog: A Year in the Life (of a Kids' Bank Book family)
This Kids' Bank Book family could be you! Read all about the cool, fun experiences and insights that this family has - all from starting on a new path toward Wealth Habits and Financial Freedom with The Kids' Bank Book.
Fetching RSS feed... please stand byGreat Love of Parenting Shirt on CafePress
Littlest People Sweatshirt
"Taking care of the littlest people takes the biggest heart."
Sweatshirt
Price: 35.99 
Kids' System for Wealthy Habits
The System in my Kids' Bank Book (www.kidsbankbook.com) is a 25% More Money (investing), 25% Spending, 25% Christmas/Gift Savings (to buy gifts for others), 25% Donations system. Here is a list of the topics that I cover in The Kids' Bank Book (it has 2 parts - The Theory and The How To). Vote your most important, most relevant topic up or down.
MORE Information about The Kids' Bank Book
- Kids' Bank Book's FAQ
- FAQ about allowance, about using The Kids' Bank Book, about kids and real life investments. You can e-mail your own questions and have them answered.
- Kids' Bank Book - What You Wish Your Parents Had Taught You
- Alot of us were taught, intentionally or unwittingly (by parents who I am sure were teaching their best wisdom at the time), very negative and self-destructive concepts about money, saving it, using it, and growing it. Here's a brief discussion of positive, productive, wealth-oriented thinking that we wish we were taught - and that we want to pass along to our children. The Kids' Bank Book is oriented and geared toward this positive thinking.
- Kids' Bank Book - Part 2 to the Above Discussion
- This is a more extensive discussion about different money beliefs, how they can be positive or debilitating - so you can better understand and evaluate how you got here and where you are going - and where you want your children to go - and how you are going to get them there.
- Kids' Bank Book - Teach the Times Tables to Your Child
- I am a math nerd, as well as an artist (which is what makes me a great lawyer and writer). So, as a true math nerd, creative parent, I have had lots of fun teaching the times tables to my step-daughter as well as other kids. What's that? Your recent times tables practice session with your 3rd or 4th grader wasn't fun? Try my approach. It guides you with exactly what to say and how to say it. Spelled out in detail completely on this website page - just for you, just for fun! I love sharing the wealth! ;)
- Free 5-Part Email Series
- 5 Tips to Wealth Training Your Kids
Donating or Tithing
Answer the poll, and tell me by Submit a Blurb (at the bottom of this lens), why or why not - and if so, who their favorite charitable organization is.
Your Favorite Wealth Resources
With a few from me
Are you a homeschooler? Are you an avid wealth blogger or blog reader? Are you a member of a web group that focuses on parenting or money? Give us your best advice about the most current web wealth resources - just click on Add Link - I'll review and be happy to add it if it's quality. And, as always, vote your favorites to the top of the list (by clicking the little left-hand-side arrows)!
1
Kids Roar
Kids, age 8 to 12, living the wealth habits system! Go kids! Want your kids to be this enterprising? Get your system in place, and then get your ki...0 points
2
Teaching kids financial literacy
Making decisions about money can be difficult and many of us have no confidence in our financial skills. Here are a few facts that re-iterate the impo...0 points
3
Money Sense for Kids
Money is something that isn't usually openly discussed in families. However, talking about money can help your child develop important life skills aro...0 points
Why No Link to a Kids' Bank?
You won't find any link on this lens to a kids' bank because I don't like any of the kids' banks on the market. None of them take care of money in a way that is conducive to treating kids about money.Piggy banks don't work for tons of reasons. Learn about many reasons why piggy banks don't work - and in fact, why they are destructive to learning wealthy habits at "How to Teach Wealth Habits to Your Kids", at
How to Teach Wealth Habits to Your Kids
Then there is the case of the very few 3-part or 4-part banks that are on the market. These kids' banks attempt to cooperate with a 1/4, 1/4, 1/4, 1/4 money management system like I discussed above, or with a 1/3, 1/3, 1/3 system (investing, spending, donating). But, none of them are constructed in a way that addresses the evils of the piggy bank. (again, see the squidoo.com/kidsandmoney lens)
So, I advocate making your own 4 part bank that does everything that a piggy bank doesn't - allows easy access (in and out) for the money, keeps paper dollar bills neat, etc.
Get the Basic Instructions of
"How to Make a Giving Bank that Works" at
How to Build a 4 part Kids' Abundance Bank
TOP 5 Netflix Movies - for Families and Kids
Want a great way to add more disposable income into your (or your child's) investment account? Sign up for Netflix. It will save you rental fees and late fees.
Want a great way to attract more wealth into your life? Be happier more often. Good way to start - share some laughter with your kids watching a fun movie.
FYI - Of the following list, I recommend The Incredibles :)
- 001- Night at the Museum
Chaos reigns at the natural history museum when night watchman Larry Daley (Ben Stiller) accidentall...- 002- The Chronicles of Narnia: The Lion, the Witch & the Wardrobe
Based on C.S. Lewis's classic novel, this enchanting tale follows four London children who are sent...- 003- Ratatouille
Brad Bird (The Incredibles) co-directs this Oscar-winning Pixar offering, following the antics of a...- 004- WALL-E
In a futuristic world, human beings have destroyed Earth and evacuated the planet, leaving the clean...- 005- Cars
Prepare to peel out with this revved-up animated adventure featuring classic automobiles, plenty of...- Try Netflix free for 14 days
Cool Squidoo Lenses about Parenting
Squidoo is a great place to get easy-to-read, friendly answers, and lists of Web resources on your favorite parenting topics. Each and every lens listed has been personally checked out and approved by me. Feel free to vote your favorite Squidoo lens up (or down).
How to Teach Wealth Habits to Your Kids
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Lots of ideas for pipe cleaner art. Great activity more...0 points
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A love of music is one of the greatest gifts you c more...0 points
Reader Feedback
Like this lens? Want to give feedback or just a thumbs up? Want to give additional comments about your poll answers or rankings or contributions above? Do it here! [Also, look here for my various comments about kids' money and allowance.]
kidswealth wrote...
After reading your lens (and giving you 5 stars) it seems we agree on many points when it comes to teaching kids about money. I also believe that an allowance is key to teaching kids about money, and that Piggy Banks are terrible. Check out my lenses when you have a moment. http://www.squidoo.com/lensmasters/kidswealth
Posted August 11, 2008
anilg wrote...
Nice lens with lots of useful information. If you are willing to make money online, then please visit my lens
Posted June 26, 2008
TheresaMarkham wrote...
When was the last time you laughed with your kids? If not today, try tonight at dinner or watching a movie or driving in the car. Laughing together builds trust. Trust builds easier money talk. Kids' Bank Book
Posted April 09, 2007
TheresaMarkham wrote...
Using a 3-part bank (sometimes called a Giving Bank)? Ever try to divide a dollar evenly by 3? Ever try explaining why one bank is going to get more when you've just convinced the kids of the importance of making it even? Spare yourself the headache. Get wisdom with The Kids' Bank Book.
Posted April 06, 2007
TheresaMarkham wrote...
Want to have a fun time with your kids? Play CashFlow 101 with them (about age 10 ). Don't try to teach them - just have fun
Posted April 04, 2007
TheresaMarkham wrote...
Have a specific question about Allowance? Email me - click on CONTACT ME just below my Bio in the top right corner. Isn't Squidoo great that you can get to see such a personal side of me instead of some brightly-highlighted-big-bold-lettered-sales-page? Wishing you All the Best, Theresa
Posted April 03, 2007
TheresaMarkham wrote...
Now how to teach kids how to manage their allowance money so that they'll have spending money, investment money, money to donate and money to buy holiday gifts with - see my Squidoo lens Kids and Money!">
Posted March 27, 2007
TheresaMarkham wrote...
Best laughter medicine? Listen to Abbott and Costello's, Who's on First. You just can't listen without cracking up. Be sure to introduce your kids to it (about age 8 and up)!
Posted March 25, 2007
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My Current Favovrite Quote
Do What You Can,Where You Are,
With What You Have!
- Teddy Roosevelt
Here's What To Do Next:
note: write this down :)
- Go to Kids' Bank Book
- Click on the Get The Kids' Bank Book Now link just below the happy family picture
- Read Kids' Bank Book, which you just received instantly online (after your $27 investment)
- Chuckle, smile, think, say aha!, say oh now I get it! (while reading it)
- Watch your children Thrive with their new-found financial Wisdom
- Joyously listen as your children boast of their new financial skills to other friends and family members
- Celebrate! A financially wise generation is born!
by TheresaMarkham
Theresa A. Markham, Esq. loves living in scenic Northwest New Jersey with her husband, Chuck, and daughter Zoe, who are visited by her GWU-colleg...
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