The Purpose of Allowances

The real reasons why we give kids an allowance.

Allowances

It’s not uncommon for parents to tie children’s allowances to their chores, their homework or even their grades. But Jolene Godfrey, author of Raising Financially Fit Kids believes the real purpose of giving children a few pennies of their own to rub together isn’t to reward them for a job well done but to give them the opportunity to learn how to handle money. “The purpose of this allowance is to give you practice to learn how to spend wisely, how to save so that you can begin to build a safety net for yourself and how to share with others and function in a philanthropically thoughtful way to make a difference in the world. And I think that in the very beginning, when children are very young, you are letting them know that saving, sharing and spending wisely are expectations that you have of them, that it’s not a surprise down the road when they’re in adolescence and resisting everything.”

The Parent Report’s guest expert is Joline Godfrey, CEO of Independent Means and author of Raising Financially Fit Kids.

From the nationally syndicated radio show “The Parent Report”, hosted by Joanne Wilson and heard on more than 100 radio stations. Any advice or information contained herein should never be a substitute for professional and/or medical advice, diagnosis and treatment. For more information please review Terms of Service

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