Teenagers need money all the time. Does it help them to earn the money or receive an allowance?
Pros of giving a teenager an allowance:
- Teaches teens about finances
- Teaches responsibility and work ethic if allowance is earned by doing specific chores
- Teach family values of saving
- Teach family values of donating to charity or church
- Learn to make financial decisions
- Learn to plan for upcoming events; managing money
- Learn to budget their money
- If connected to getting good grades in school…can be an incentive
- Learn the consequences of making a bad decision regarding money
Cons of giving a teenager an allowance:
- Teen thinks they should get paid for everything they do; what about teaching responsibility for everyone taking part in keeping the household running by pitching in doing dishes, making bed, vacuuming the floor etc.
- Teen may think money has less value because it is not earned (if just given)
- Teen may play into entitlement
- Teen may have less motivation
- If connected to grades, may be hard for a student that has great difficulty achieving in school
- Teen may think they should get paid even if they do not complete a task well
- Teens compare their allowances with other kids
- Handing money to a teenager is an easy way out of interacting with your teen
Be involved with your teen regarding managing money. Discuss options, but let them make choices and live with the consequences.
As teenagers get older, they can get part-time or summer jobs and earn money toward purchasing a car, paying for car insurance, cell phone, extra clothes, etc.
Do what works best in your family. There is no right or wrong answer. Young people grow up every day into adults some had an allowance, some did not.
