Should Kids Receive Allowance for Doing Chores?

While whether kids should receive an allowance at all is a debate in itself, parents who are pro-allowance typically fall between two sides of the spectrum. Some believe allowance should be earned by doing chores and others say it should just be given and it is up to the child to manage his own money. There is even debate on whether kids should receive money electronically or as cold hard cash.

Gregg Murset, founder of BusyKid.com, is a proponent of the idea you have to do something in order to earn your money. “You need to challenge them by providing different opportunities for them to make money, and challenge them with these concepts we’ve been talking about: saving, sharing, and spending,” Murset says. 

Murset’s app BusyKid allows parents to assign chores to their kids, and the kids can see how close they are to “payday” and decide how to budget their money. “It doesn’t make sense to give kids $20 at the end of the week when they just sit around and watch Netflix,” Murset says. “We need to teach kids what we do every day: We work, earn some money, save some, share some with charity or people we care about, and then spend the rest.”

Rather than using cash, Murset says kids should learn how to use debit cards or phones to pay because most forms of payment have shifted over to technology. “One thing that drives me nuts is when people say, ‘Kids don’t know how to balance a checkbook these days.’ Well, no one really uses checkbooks anymore,” Murset says. “We have to change our mindset and teach kids in a way that makes sense.”