A recent study I found stated that 70% of kids get allowances, up from 47% in 2013. While this seems really high to me, I am curious about the long-term effects of giving children an allowance as they grow up. Should children get allowances for doing chores, specific extra jobs, or some just for fun spending money? How much money is a good amount per week or per month and should it increase based on a child's age/contribution to the household? What are some good ways to encourage saving, budgeting, and managing money?
I think that ultimately they are good because they can teach kids from a young age that they are in charge of where their money goes, if they make a mistake or mess up the budget they have to pay for the consequences, whether that's not having enough for candy (child) or riding the bus to school instead of driving because there's no money left for gas (teen). It also encourages them to save up their money for bigger items and teach them to manage money over longer periods of time instead of just week to week. Lasty, I think that including chores establishes an important connection in the child's mind between money and work and ensures that they don't feel the money is jsut being handed to them.
Another option to that would be having base chores that they do no matter what like maybe keeping their room clean and then offering up extra jobs they could do for cash every week. Did you get an allowance as a kid? And if so, did it help you or did it hinder you?