Should Kids Get an Allowance? — Clip from The Wealthy Barber Podcast

Do(/did) you give your kids an allowance? Why or why not?

This clip is from Episode #2 of the podcast with Robin Taub about all things kids and money.

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 Let’s jump right to, of course, one of the hottest subjects in your field.

Allowances. Do you believe in allowances and do you believe there has to be work associated with getting the money? What’s your thinking there?

I do believe in allowances as a teaching tool. Again, as I said, kids will think a lot harder about spending their own money than they do when they’re spending yours. And that’s true with an allowance as well, because they have accountability over it and responsibility over it, especially as they get a bit older.

So I think it does give them an opportunity to learn how to save and spend and share and invest. But I think if these, this is probably money your kids are going to be spending anyway. And if you don’t give them some opportunity to make the decisions and make mistakes. And learn from them when the stakes are low, and that can be difficult to teach those lessons as they get older, because you do want them to fail a bit. You do want them to make mistakes with money, to blow it, to not be able to go out with their friends because they’ve already spent their money and not rescue them.

And if they don’t have any of their own money and you’re always just doing it, giving them money when they ask for it or letting them use your cards. It’s just, they’re just not going to learn.

Love all that. And you’re right. It comes back to choices again. Now I laughed. I listened to you in another interview and you talked about how you, the ultimate expert, literally the most famous voice in this area, forgot to give her kids their allowance on several occasions. And I like that because basically you taught your kids, trust no one.

You can’t even trust your mom for heaven’s sakes. That’s a good, valuable lesson that you’re bringing to them.