Should You Tie Allowances to Chores?

There's no "right" answer. Here's why I don't.

In Tuesday’s Q&A with financial journalist Dana Miranda, we discussed lots of things relating to money, including the value of talking to kids about it. But it’s also helpful to give kids hands-on experiences with money, including the opportunity to spend, save and give money away. I have a whole chapter dedicated to why and how to do this in my upcoming book Hello, Cruel World!, but today I want to share some thoughts on allowances in particular.

My children’s dad and I have been giving the kids allowances for years, and we give them about half their age in dollars per week. We still provide cash — my daughter is young enough that she appreciates having a literal hands-on experience, and researchers have told me it can be helpful for little kids to actual see and handle money — but I know many parents who swear by apps like Greenlight, which manage allowances online and give kids debit cards and even investment opportunities.

What I want to zero in on today is the framing of allowances — because parents talk about allowances with their kids in different ways. Many parents directly tie allowances to household tasks, explaining to kids that they earn money each week for the things they do around the house — taking out the garbage, walking the dog, cleaning their room, etc. Other parents — I’d guess the minority — give their kids allowances every week no matter what, and although they might expect their kids to do household tasks, they don’t tell their kids that their allowance is compensation for them. Their allowance, in other words, is considered separate from their household chores.

There is no research that I know of showing that one approach is “better” than the other (and researchers who study this issue have said the same when I’ve asked), and I believe both approaches make a lot of sense. But in our home, we have decided not to tie allowances to tasks, and friends often ask me why. So I thought I’d explain my rationale and discuss some of the science that led me to this decision.