Allowance, Part2

I was talking with a friend about a kid's allowance, and we remembered the age-old debate of just getting an allowance vs. earning an allowance. In my previous post on allowance, I mentioned this dilemma. In this conversation, I realized there is a third way to do allowance. It combines the two and what my parents did with me and my sister.

The third way is to give the child an allowance and then have opportunities for them to earn more with special chores. In the case of my late father, it was to shine a pair of his shoes and/or squeeze oranges for fresh juice using the manual press. We started with earning 25¢ and eventually, the amount was raised to 50¢. I still have the shoe-shine kit, and while the polish has been replaced several times over the years, I still use it. These chores were out of the ordinary (make a note). I stand behind my Rule of Thirds allowance and did not pay my daughter for everyday tasks like making her bed and/or setting the table. My daughter makes her bed every day because she likes having a neat bed to return to at night for sleep 

"'Providing kids with payment for chores can help them understand the concept of earned income as opposed to money received as a gift.  Earning money helps kids to understand both the value of earning and the value of money by allowing them to appreciate the connection between work and financial gain.' Beth Zemble, VP of Education, GoHenry." — GoHenry

"So who is right? What is the best choice for the parent committed to raising responsible, humble, and motivated kids? According to psychological science, both opinions are right – depending on the situation. Researchers have found that it depends on if the situation increases intrinsic motivation or decreases it." — Dr. Becca Ballinger, Parenting the Modern Family.

From earning 50¢, I moved on to an afterschool job at age 13 and babysitting for local families. By my 20s, I was making my bed every day. My father figured it out— do both. When I see the shoe-shine kit, I am reminded of what my dad taught me — to work hard. Thank you, Mom, and Dad, for teaching me about money.

(P.S. As mentioned in my last allowance post, kids develop their view of money by age 7, so now is the time to start teaching them.)