When Do You Stop?
That’s an interesting question about when do you stop paying your kids an allowance? It’s an interesting question, since we seem to be creating a generation of Kippers, but when does it stop?
In my case I am still paying my daughter in University her allowance, but it was capped when she left University. She has been using it as her “mad money” to maybe go out with or whatever (I don’t ask how it’s being used, but I do see it go).
Am I disabling my child’s financial education by continuing this free money? I think my opinion is Yes and No, given this daughter actual has worked for her money (hard at a local Grocery Chain) and she has helped out with University Costs as best she can, so I don’t resent paying the money, but am I somehow teaching her that Mum and Dad will always be there (and is that idea a bad one)?
I think it also depends on what you view the Allowance as (in terms of a financial tool). Are you teaching kids about how to manage money, so you are giving them some money to learn from, or are you teaching your kids that you must work to earn money in this world (unless you buy a LottoMax ticket, in which case it’s not quite the same)?
My guess is I may end this subsidy, once my kids graduate, and hopefully I’ll be able to help them in other ways once the graduate, but I am always game to hear what other folks think about on this subject.
Back To School
A few other quick views on back-to-school and RESPs
- RESP: Back to School Reminders for September.
- So that is what $50,000 looks like… It is important to know what is the final goal for an RESP.
- Back to School (Monetary Nightmare) the start of September can be expensive.
- Back To School and RESP Time is the time to think about this. When else if not the start of school?
- University, Who Pays ? It isn’t written in stone that you must pay for your kids’ education.
- Kids Allowances (redux) is this concept dead? Are allowances passe?
- Money Hemorrhage in August? (aka the Scream). September can be a very expensive month.