In my opinion if your parents give you money just to give you money you will not learn to appreciate how money is earned. Allowance builds a sense of entitlement where you feel you are supposed to get money for doing things you should be doing anyway. Things like making your bed or in some cases doing no chores at all yet still getting an allowance. Allowance can also teach bad habits about money. It can also foster a false sense of reality. Can you image as an adult getting paid for making your bed? It would be cool but it’s not going to happen so prepare now and live better later.
There are other ways that may be more effective for you to understand money like a Commission based allowance. Me and my sister sell shirts and sell my dad’s book and for every sale we get a percentage. Maybe if you don’t have a business or a book or clothing you could sell old stuff. I have a friend who sells candy and toys he no longer wants. He is also learning how to negotiate and budget which are more practical skills by using real life examples.
Not getting an allowance has helped me grow a sense of pride because I have earned my money from my hard work. Since my money comes from me trading stock, selling shirts and cutting grass I value the money more. Especially after cutting cutting grass because I am out in the heat for hours. It gives me pride knowing I made the money by myself with hard work. When you earn money off of your hard work you learn to value yourself and money more.
Since I’ve worked so hard to earn the money I am not as eager to spend it. So better to learn the value of money now as a kid and create good spending habits. Then to learn later in life that getting an allowance was a bad idea.
Kali