Allowance is an excellent tool to teach kids about money while cutting your own expenses. The idea is you’ll make them save up for their own stuff, which will keep you from spending as much money on them. The problem is sometimes allowance ends up being a crutch that continues well into adulthood and only teaches grown “kids” to rely on their parents for income.
The decision of when to close the Bank of Mommy and Daddy is an intensely personal one, but Kidworth offers a guide for stopping payments to your young.
The post says answering these questions will help you decide when to cut the kids off:
* Is your kid old enough to work? If your child is old enough to get a job, you may be only teaching him about welfare by keeping the money flowing.
* How much money is your kid making? Providing matching funds to save for altruistic goals can be a strong motivator for your kid to earn more.
* How do you want your kid to spend his time? If you’d rather he study or practice a sport or a instrument rather than flipping burgers, a longer-term allowance may be in order.
When Should You Stop Paying an Allowance? [Kidworth]