You Earn Money; You Aren’t Entitled To iT

According to Godfrey, an allowance isn’t a gift. “there are no entitlement programs simple beause you were born,” she says. “Kids need to earn their money to understand how things work - and to understand how difficult it is for you to earn money.” In godfrey’s house, her kids dont get paid just to keep their room clean. Those are citizen-of-the-house chores. Godfrey does pay an allowance for jobs that teach the kids life skills within the household: recycling, ironing, washing the car.

Godfrey’s allowance system requires that children take ten percent off the top for charity; the other 90 percent is divided qually between quick cash hey can spend now, medium-term savings (for a bicycle or designer clothes), and long-term savings (college). What’s key is to use an allowance as a money management course with training wheels. “Kids will learn to live within their means or eanr more,” Bodnar says. “Itold my kids I would prchase their tickets at the movies, but they would have to spring for their own popcorn and soda out of their allowance. Immediately they started looking for theaters that give free refills. If it were my money, they wouldn’t care.”

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