Yahoo Finance Why I don't give my children pocket money
Paying youngsters for simply existing isn't doing them any favours.
OPINION: As households across Australia grapple with rising financial costs, pocket money is one of the casualties, with most children now missing out. New research from Compare the Market found 64.2 per cent of youngsters don't get a weekly allowance — and my two primary school-aged kids are among them.
To negate the fact she doesn't receive a regular payment for simply existing, my savvy eight-year-old recently proposed an alternative scenario where she charges to complete certain tasks. These were: washing up ($5), stacking/unpacking the dishwasher ($3), vacuuming the front room ($3.20), packing away groceries or helping with laundry ($5 each), and $15 for cleaning the bathroom, toilet excluded.
When she first came up with this suggestion (while holding a pen and clipboard), my first instinct was to laugh but later I thought, that's actually pretty enterprising. Why not let her start financial negotiations on what is a decent pay for five to 30 minutes of work? I happily agreed to her proposal.
Teach them young
David Koch, Compare the Market's economic director, made a good point when he recently said getting kids to do chores around the house in return for cash is an important first step in creating good financial habits. "Perhaps now more than ever, given our economic climate, it's important for parents to teach their children financial literacy," he said. "Kids aren't oblivious to the financial strains many families face, especially those in their teens, though they may not fully understand why it's happening.
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"You don't need to be an economist or finance expert to start laying the foundations. When young ones want something for themselves at the store, parents can start by asking them to buy the item from their pocket money or encourage them to save to reach their goals," Koch added.
Personally, I believe it's important for children to realise that not everything comes for free, as let's face it — in the real world, it doesn't.
The tasks I won't pay for
Chores such as making the bed, packing clothes away and keeping their own room tidy are things I think should be a basic expectation once kids reach a certain age and not paid-for tasks. However, it's obviously up to individual parents to decide what they think is fair, reasonable and manageable for their own kids.
Of course, there are moments I cave, such as when I see my eldest at Kmart clutching a selection of art supplies with a, "Please, Mum?" expression on her face, and I add them to the basket. But if it's "Muuuum, can I get a Squishmallow?!" from either of them, it's a hard "no" and something to save up for or add to the Christmas list.
While it's important for children to feel valued and get little treats when deserved, they also need to be prepared for an unpredictable world where nothing is handed out for free and unexpected events can throw everyone into a talespin, regardless of their income.
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