To Allow or Not to Allow? By Havalah Puccio

Money. It is so small, yet because of it, nations have risen and fallen and wars have been fought. One might say it runs the world. It can make you or break you, so it is important to learn how to handle it wisely. Many parents have settled upon a monthly or weekly allowance to teach the next generation how to handle money. But this system is not turning out financially independent  and responsible adults. Parent should reconsider allowances and use a better way of teaching financial wisdom,  and bring up a generation who have character and knowledge of wealth.
Many parents believe that allowances are the best way to teach their children finance, character, and hard work. However, many parents just hand out the money and give no guidance on what to do with it. Not only is the child learning to get money they didn’t earn, they are also learning bad spending habits, and that life gives them free handouts. Altogether, the child is picking up bad work ethic, catastrophic spending habits, and the
unrealistic and destructive view that they will be handed the most important things in life for free without earning it. On the other hand, quite a few parents give their child allowance for doing chores. This is a definite step in the right direction, for it can teach hard work and responsibility. However, money isn’t the only way to teach these principles, and once again the child can learn bad spending habits, since they can easily earn it and they have no guidelines. In addition, they are missing a very important principle that allowances are stealing from them, that sometimes you should do a chore, or job because it is right, not because of money. There is not a quick fix way to develop a responsible child, it takes  interaction and guidance to teach a person how to handle money, allowances definitely don’t teach a child this.
Also, allowances can be done by many modern families, but for people  who financially can’t do it, and the families of the past, it was and is impossible. So how do these families in past and families in the present teach their children to be money growers instead of money wasters without allowance? First, parent’s give their children responsibilities and a choice to get it done right, or be given a punishment. This teaches responsibility, hard work and consequences, three important principles of wealth. Then they give their child money making opportunities, to teach them how to earn their own money. Finally, they teach their child how to use their money wisely, and not waste it. This way is better in so may ways. Mainly because it focuses on the most important principles of wealth, hard work, character, and stewardship. By learning how to be wealthy before earning money, they will already be richer.
As a kid, my parents decided it wouldn’t benefit anyone to give me an allowance, especially the bank account. Instead, I grew up working hard and learning responsibility. This made it easier for me when I got birthday money, or extra hard earned cash in the summer, for I knew what to do with it. They taught me to never spend it all, as I saw other kids doing, but saved some of it for later investments. This taught me stewardship of money, to watch a budget, and find ways to make more money. There is nothing so satisfying as earning your own money, and watching it grow. This way, my parents taught me how to handle money wisely. For there are two things you can with a river, you can glean from the natural resources and benefit greatly from it, or you can waste it, and let all of it’s potential flow by you till it is dry and wasted.  Money is a lot like a river, you can use it and gain a lot of rewards, or you can waste, abuse it, and let it dry up.
Allowances are not effectively teaching financial wisdom to the next generation. Parents should reconsider allowances and start using effective ways that actually successfully bring up financially independent, and responsible adults. Just like you don’t just drive without learning how to, people don’t learn how to handle money wisely without being taught how to.
Allowances don’t teach financial wisdom only parents who guide their children in the ways of wealth do.