Are allowances a good idea? Should children be paid for household chores? Should teens have after school or summer jobs? Do stored value cards help young adults establish credit? Should you start a college savings fund when your child is born? Ultimately, only you can make these decisions for your family.
Remember, perhaps as important as the lessons that you teach at home; the modeling that you provide, the way you tackle your own financial challenges, and your attitudes towards personal finances all contribute to your child’s development.
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The Marshmallow Test
The above video reenacts the famous “Marshmallow Test” that was designed to observe how young children cope with a delayed gratification scenario. The children are given one marshmallow and told that they can eat it now, or if they wait for a period of time and don’t eat it, they will be given another marshmallow. Aside from being incredibly cute, the kids demonstrate just how difficult it can be to wait for a greater reward. This concept is related to some strateties regarding allowances.
Here are a few articles regarding allowances. Some of this information provides conflicting positions. We encourage parents to review various opinions and devise a strategy that best reflects your family values and your overall approach to raising your children.