Many Christian parents wonder how they should deal with allowance. The following tips will help kids learn the importance of carefully spending, saving and giving money to those in need in the community. Learning financial discipline is one of the components of positive discipline in the Christian home.
Chores and Allowance
Many people link chores with allowance and that’s how many parents grew up. But when it comes to family values, it might be a good idea to keep them separate. Ideally, chores should be seen as an important part of what it means to be part of family. Everyone works together and cooperates to help make the home a clean, safe and happy place. It helps children learn the responsibility of being in a group where everyone does their part to take care of each other
As well, it’s hoped that children learn that who they are is more important than what they do. Part of building a strong and healthy foundation for the family, is for kids to know they are loved unconditionally. As an extension of this, allowance should not be linked to chores. Allowances should be based on helping kids meet their expenses and to help them learn how to handle money responsibly.
Financial Skills and Allowance
A great way to approach allowance is to teach the “Three $’s.” They are Spend, Save and Serve. The idea is to teach children to their divide money into three categories; money to spend on their expenses, money to save for what they want and money to give to the church or donate to a charity. Teach this concept to children as early as possible. Help them open a bank account and learn how to budget and earn money.
Spending: Allowance for Expenses
Everyone in the family has personal expenses. These can include basic clothing items, school lunches, swimming or skating admission fees, etc. It’s important to talk to kids about the difference between “wants” and “needs.” For example, new shoes can be needed, but $250 name brand shoes are a want. Allowance should help cover everyday needs, and anything above that, kids can work on saving up their money.
Kids Earning Money
If kids are looking for extra money, some families have a list of specialty “jobs.” They can choose to do things like wash the car, clean the windows, organize the shed, etc. As kids get older, they can get work through paper routes or babysitting.
Saving: Kids Putting Money Into the Piggy Bank
Teach kids about the importance of always having some money saved up. Kids can start with small goals like saving up for a toy or CDs. They can also save for bigger things like money for going to college or a family vacation. If there is a family goal for saving money, like a vacation, it can be talked about and charted at a family meeting. Saving is a habit, and it’s good to start early.
Serving: Giving Money to Good Causes
Service is the last S in the “Three $’s.” This is about teaching a child that part of his or her money should be given back to the community. Children can bring in their own money for offering at church, they can donate to a non-profit agency or they can buy something for a family in need in their area. How much they give as a percentage of their allowance can be decided as a family. If parents want their kids to give 10 per cent of their money to charity, parents must also remember to role model this themselves.
Allowance is a great opportunity to teach children how to be financially responsible by learning how to spend money, save money and give back to their community. Keep chores separate from allowance and
Reference: Nelsen, Jane; Erwin, Cheryl; Brock, Michael; Hughes, Mary. Positive Discipline in the Christian Home: Using the Bible to Nurture Relationships, Develop Character and Strengthen Family Values. Roseville, California: Prima Publishing, 2002.
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