Genesis 3:10 reads, “In the sweat of thy face shalt thou eat bread.”
In an April 1975 general conference address, Elder Marvin J. Ashton said,
“One of the greatest favors parents can do for their children is to teach them to work. Much has been said over the years about children and monthly allowances, and opinions and recommendations vary greatly. I’m from the ‘old school.’ I believe children should earn their money through service and appropriate chores. Some financial rewards to children may also be tied to educational effort and the accomplishment of other worthwhile goals. I think it is unfortunate for a child to grow up in a home where the seed is planted in the child’s mind that there is a family money tree that automatically produces cash once a week or once a month.”
Allowance Principles
Giving children an allowance allows them to learn how to handle small amounts of money without the worry of making drastic mistakes (i.e. not making rent or a car payment).
Determine an appropriate allowance amount based on income and children’s age. A general guideline is 50 cents for each year of age. But keep in mind that if you expect your child to buy his/her own clothes or shoes, this guideline may not be appropriate.
Assign children household chores to complete in order to receive a weekly allowance.
Teach children the importance of saving (see lesson on Saving). Elder Ashton offered these words of caution when teaching children about saving, “’Save your money’ is a hollow pronouncement from a parent to a child. ‘Save your money for a mission, bicycle, doll house, trousseau, or car’ makes understandable sense.”
Allow children to make their own decisions about how to spend their money, and then allow them to suffer the consequences of unwise spending.
Words to the Wise
Pay children allowance regularly and on time.
Choose an amount that will allow your child the freedom to make decisions.
Teach children that before spending their allowance, first they must pay the Lord 10 percent and second, put 20 percent in savings.
About the Author:
Tom Capece is an Executive Vice President and our Chief Operating Officer. He has been with Deseret First for many years. When he's not working, he enjoys spending time with family and being in the outdoors.
