I was in Michael’s yesterday buying key charms for my money management lesson on the keys to compounding. \u00a0With my 40% off coupon, of course. \u00a0I was behind a mom who I felt increasingly sympathetic for. \u00a0But not really because she allowed herself to be in the position she was in.<\/p>\n
The mom was there with her two daughters. \u00a0They looked to be about 8- and 9-years old. \u00a0The older one asked her mom if she could buy one of the little toys that was on the display case we were standing next to. \u00a0“No,” was the immediate answer. \u00a0And then the inevitable, “But why?” \u00a0And the standard response, “You don’t need it.” \u00a0\u00a0<\/p>\n
Then the younger one chimed in, “Can I have something?” \u00a0I’m not sure why she thought she could get something if her sister was denied. \u00a0But again the mom went through the no-you-don’t-need-it routine.<\/p>\n
So, taking a different approach, the younger one then asked if they could go to the Dollar Store and buy something. \u00a0That didn’t work, either.<\/p>\n
It was all I could do not to grab the mom, swing her around, and tell her to give her daughters an allowance. \u00a0Not because I want her to give her kids money for the sake of having it but because I want her daughters to learn how to handle money. \u00a0The only way you learn that is to have money to handle.<\/p>\n
The daughters need to learn on their own that they don’t really need<\/em> that toy. \u00a0And they’ll learn a lot faster if you make them pay for the things they think they need. \u00a0<\/p>\n But there’s another benefit to giving your kids an allowance. \u00a0It provides parents with sanity. \u00a0The mom was obviously in an uncomfortable situation having to argue with her kids about not buying the toy. \u00a0If kids have money the only thing you need to say is, “Do you have the money for it?” \u00a0That toy is an “extra”. An allowance shifts all those extras right into your kids’ little hands.<\/p>\n