Welcome To Life

Dan wants to know if he should pay his eight-year-old a weekly allowance. Dave says no.

QUESTION: Dan on Twitter wants to know if he should pay his eight-year-old a weekly allowance. Dave says no.

ANSWER: No. Allowance is like welfare. They think because they breathe air, they’re due money. We don’t want to teach them that. Don’t do that. Instead, pay them commission. Commission is work, get paid. Don’t work, don’t get paid. Assign some chores that have money attached to them. Assign some chores that they do just because they’re a member of the family, and I could take you out and make another one that looks just like you. Assign some chores that you pay for because we want to teach a kid to do four things before they leave home. Work, which creates money. Once they work and create money, they’re on commission. Work, get paid. Don’t work, don’t get paid. Those that don’t work, neither shall they eat. Sounds a little harsh, doesn’t it? Welcome to life, darling. Once you’ve worked, what do you do? We teach them to save, give, and spend wisely. Work, save, give, spend. Basic handling of money. Create teachable moments with your kids to do that.