Allowance? What's In It For Me

Probably belatedly, the wife and I began giving our 8 and 4 year old kids' allowances this past Winter/Spring. After doling out the allowance for a good 6 months or so, I've realized several things that make me wonder why I didn't start handing out the dough several months' earlier.

First, holding the allowance over their heads is an excuse to make your kids do chores around the house, something my wife is semi-successfully using. My children are fighting back, of course, utilizing their world-class whining skills, largely bringing the standoff to a draw, but at least my wife is armed now in this battle to try to get them to do chores and clean their rooms.

Second, as part of my attempt to emulate life from 1950's TV shows, I have a change bowl near the back door of my house into which I deposit the contents of my pockets at the end of each day. The allowances are normally drawn, in part, from that change bowl. In the past, change sometimes mysteriously went missing. I don't know that the kids had any real intent to steal; it was just that the ownership of the change was never firmly established and it seemed like just another toy to them. Now that they know that they are getting paid from the bowl, if anyone touches the bowl they come running to me to tell. No one is cutting off their source of funds!

But really, the most important reason to give an allowance is that is serves as a magic cloak that you can wear when hanging out in the checkout aisle of a store with your kids. They want tic tacs, a crappy yo-yo, a cigarette lighter? There's no need for you to buy them anything. All you need to do is say "maybe you can spend your allowance on this." (note: when kids get older, you can change the response to the more brusque "what the hell do I give you an allowance for?"). Of course, they never have the money with them.

(note: don't fall prey to the "I'll pay you back" line. They are your kids. They owe you, if you think about it, tens if not hundreds of thousands of dollars in room and board, educational expenses, etc., none of which you're ever going to see. What makes you think they're going to pay you back for the $1.50 they just borrowed from you? Also, payday lending is getting outlawed in many states, so you can't charge them high interest rates anymore, so it's just not profitable).

With these benefits, there's no doubt in my mind that providing an allowance is a good idea. The problem I'm having now is determining the proper amount. One of the divorced kids from my kids' school is was alleged to be getting over $10 by the second grade by compensating parents. The children of the hippies at our kids' school are getting nothing still ("Teach kids about money! No way! Down with capitalism!"). Right now I'm giving my 3rd grade $3-4 a week and the kindergartener $1.50 a week, but I have no idea if that's the right amount or not. I didn't think I'd be able to get away with giving them different amounts, but the younger one hasn't thought to complain yet. Actually, since he normally leaves the money lying around the house on the floor anyway, if he complains I'll just up his allowance to $100 a week, since I'll be able to get it back at the end of the day anyway just by walking around and picking it up.