What Kids Buy with Allowance—And Why Parents Give Allowance in the First Place What is an allowance for, anyways?
An allowance should be given to promote healthy money management. It should not be given as compensation for chores. Chores are an everyday part of being a member of the family. The praise and thanks for completing chores is remuneration enough. Some parents might ask, “Why give kids money for free?” Good question! But the fact of the matter is, you already do give them money for free by doling out cash for treats, clothes, games, toys, books…you get the picture. Even without an allowance, you’re still giving your kids “money for free.” And this is why an allowance is so great: it allows you to keep the spending on your children in check (actually saving you money!) while teaching them valuable life skills at the same time. Allowance shifts a lot of the spending decisions to your children—and what kids buy with their allowance teaches them practical financial lessons that last. This doesn’t mean taking a 100% “hands-off” approach to parenting and managing your child’s spending habits.
