PEARL 1

Allowances/Money

There comes a time in the life of every child when financial

responsibility pokes its foreboding snout through the tent flap of his or
her world. We call it an allowance. It usually begins when a child is five
or six years old.
We give children allowances because we want to teach them money
management. Kids who have to struggle with money become not only
more fiscally responsible but also more responsible in all areas of life.
Several helpful rules on allowances will help our kids make the most
of this terrific learning experience:

Rule    One:    Children    do  not earn    their   allowances. That    means   we

do  not pay them    to  do  their   chores. Being   paid    for chores  robs    them

of  the dignity of  holding up  their   fair    share   of  the family  workload.

The only    time    we’d    pay them    for chores  is  when    they    do  our chores.

Rule    Two:    Provide the allowance   at  the same    time    every   week.

This    can be  done    with    pay envelopes.  Place   the cash,   plus    a   small

invoice indicating  the breakdown   of  the funds   (for    example,    for a

child    in  first   grade,  “$1     allowance,  $6  lunch   money”)     inside  an

envelope    with    the child’s name    on  it. Sign    the invoice,    “Because    we

love    you.    Spend   it  wisely  and make    it  last.”  The child   must    then    tend

to  the envelope.

Rule    Three:  Never   insist  that    children    save    the allowance.  They

can’t   learn   to  handle  money   if  they    stash   their   allowance   in  a   shoe

box at  the back    of  their   closet, saving  it  for when    they    get big.    Kids

must    go  through their   own economic    depression  —   wasting money