Do you ever remember hearing your parents say “Money doesn't grow on trees”? That was a phrase I heard a few times growing up. My parents wanted to make sure we knew the value of a dollar and how good it feels to work for the things you have. I believe that everyone should know the value of hard work. If you have children, there are a few things you should know about why you shouldn't just hand your child money.
Just giving them money sends them the wrong signals and sets them up for a life of entitlement. Of course, we’re not talking a dollar here and there. We’re talking about buying your child anything they want and handing them cash for everything they want to do. Below are some of the basic reasons why you need to think twice about how you handle giving your child money.
7 Reasons Why You Shouldn’t Just Hand Your Child Money
Kids need to learn the value of hard work:
When it comes to money, handing your kids money doesn’t teach them the value of hard work. They need to understand that nothing in life is free, and often, it will take hard work.
Kids need the drive to do things:
If money is handed to a child, they have no initial drive to do things. Why would they want to? Motivation to do more is always a good thing. Instead, teach them that products and services have value and that others work to provide them, so we need to pay accordingly.
Kids appreciate things more when it’s not handed to them:
As an adult, I do appreciate things that are given to me because I have had to work hard for what I have & understand that when someone gives me a gift that they are saying that I'm important to them – important enough to spend some of their hard-earned money or time on. Handing your kids money again and again only shows them that they don’t have to work for what they have!
Kids need to learn the value of saving:
The cool thing about money is that you can spend it. However, most kids don’t know the value of saving their money and they spend it as quickly as they get it. You shouldn’t just hand your child money without teaching them the value of saving it. Grab a piggy bank for them to visibly see their money being saved, or help them open a savings account at your bank.
Kids need to learn responsibility:
Money comes with a huge responsibility. When you just hand them cash, they don’t necessarily know what to do with it. Over time, you can teach your child how to be more responsible with their money. I highly recommend investing in the Financial Peace Junior Kit from Dave Ramsey. It is an excellent tool to teach your children about financial responsibility at a young age.
Money isn’t everything:
Some parents “parent” their children around the idea of money. Everything has cash value and everything they do has money attached to it. Money isn’t everything and kids need to know that. While I'm not opposed to giving children an allowance, I strongly believe they should learn that some things in life are responsibilities that they aren't paid to do. Basic tasks like cleaning their room or feeding their pets shouldn't be attached to monetary rewards.
Money doesn’t buy happiness:
You’ll quickly learn that although a lot of parents just hand their children money, it doesn’t buy their happiness. Sure, it may hand them some cool memories and a few moments of peace and quiet. No parent should feel bad for not being able to hand their children hundreds of dollars because it surely isn’t what buys happiness.
Don’t take this article as a stab at parents who give their children money. Instead, think about whether or not you should reevaluate how you hand them money. Make sure they understand the value of hard work and that money does not bring about peace and happiness.
I’d love to hear what works for you when it comes to giving kids money. Leave your comments below!