3 Reasons Frugal Parents Should Let Their Kids Earn an Allowance

Being a frugal mom with young children can be challenging. My kids frequently ask for new toys or little treats, and it's hard to say no all the time. And there are definitely pros and cons of giving a child an allowance. While maintaining a budget, I’ve found it important to find a balance that teaches my children the value of money and responsibility.

One effective strategy I’ve discovered is to let my kids earn an allowance. Here are three compelling reasons why this approach can benefit both me and my children.

1. It teaches kids to manage their own money

Giving my children their own money through an allowance has significantly reduced the frequency of their requests for unnecessary items. When my kids have their own money, they learn to prioritize their wants and make spending decisions.

This teaches them a valuable lesson: when they have to spend their own money, they often reconsider whether they truly want the item. This has led to fewer impulsive purchases and helped them develop better financial habits early on.

2. It Increases the value of money through work

When my children earn their allowance by doing chores or completing tasks, they start to appreciate the value of money more. They understand that money comes from effort and time, not just by asking for it.

This realization makes them more careful with their spending, as they are now aware of the effort required to earn the money they have.

Additionally, this is an excellent opportunity for me to introduce concepts like saving, giving, and setting financial priorities in an age-appropriate manner.

3. It provides me with extra help and time

One of the most significant benefits for me as a busy and often tired frugal mom is that allowing my children to earn an allowance through chores helps alleviate some household burdens.

Assigning age-appropriate tasks to my children not only teaches them responsibility but also gives me a much-needed break.

For example, if I dislike doing the dishes, assigning this task to my child can free up my time for other activities. Although their cleaning might not be perfect, the relief from not having to do it myself can be incredibly valuable.

Implementing an allowance system

To start this system, I identified tasks that are appropriate for my children’s age and determined a fair compensation for each task. I created a chart with various chores and their corresponding dollar amounts or opted for a flat weekly allowance for completing a set of responsibilities.

Starting with small tasks for younger children, such as folding clothes or sweeping the floor, was a great way to introduce them to this concept. As they grew older, I increased their responsibilities and the amount they earned.

Why I give my kids an allowance

Allowing my children to earn an allowance has been a powerful tool in teaching them the value of money, encouraging responsible spending, and providing them with practical life skills. It also offers me some relief from household chores.

By starting early and gradually increasing responsibilities, I’ve helped my children develop frugal living principles that will benefit them throughout their lives. This strategy not only helps in managing daily expenses but also fosters a sense of independence and responsibility in my children.

Next up, check out my 8 Simple Tips for Grocery Shopping on a Budget.