This is just one of many questions raised and explored around the subject of teaching kids about money in Ron Lieber’s book “The Opposite of Spoiled”. The book visits with parents around the country to discuss ways to help kids learn about money, and help parents learn how to talk to their kids about money. Too often, the first time we truly learn about money is at a time when we are making real financial decisions that could impact us the rest of our lives. “The Opposite of Spoiled” provides stories of how some families are handling the conversation and trying to raise children with good values.
You won’t agree with each family’s approach, however, I am sure there are at least a few examples you will be able to relate to and implement within your own family. We are planning to start with the separate piggy bank jars for “Save” “Spend” and “Give” in our house.
If you want to read a much better overview of the book than I could write, check out this blog post from Michael Kitces who does a great job writing the cliff notes.
PS. The answer to the question posed in the post seems to be no, that it is better not to tie an allowance to chores. Chores are something that everyone needs to chip in on. I’ll let you read the book to dig into it deeper.