Allowance Game
by Lori Mackey

 The Allowance game is a wonderful tool that you can use to teach a phenomenal amount of information about finances and wealth to your children. You can use it to break bad habits, stop your kids from spending all of YOUR money, teach the value of money, teach your child how to become a wise consumer, and teach a work ethic. I know you’re thinking “Yeah, right!” But read further, and you will understand why I make these strong assertions!

Remember that when a positive behavior is recognized and rewarded, it will encourage more of the same rewarded behavior. It’s in our nature as humans to look for rewards in life, whether it is through relationships or work. We like to feel good about what we’re doing and to be recognized for it.

The word “Allowance” in the dictionary means “A sum of money or goods given regularly to family members.” The definition is so vague and the terms “given” and “regularly” are the problem. What it should say is: “A predetermined amount of money or goods earned by a family member for services, tasks, jobs, or chores on a daily basis.” If the family member does not provide these services, they do not receive the money or goods.

We are raised with financial ideas and philosophies passed down through generations. Often, we just take these ideas and teach them to our own children simply because that’s what we learned and what everyone else does – even if it makes no real sense.

Allowance hasn’t worked for years, and many people don’t believe in paying their children an allowance because they’ve never been able to be successful with it. Some adults cringe when they hear me say they should pay their children for chores, jobs, or tasks. But our children are being raised with a consumer mentality. They’re lazy and aren’t doing the chores you ask them to do anyway. Yet, you’re still buying them the things they need and want. You must turn this around, putting the ball in your child’s court. Say,

“Listen, this isn’t working for me or for you. I need you to do certain things around the house because you’re part of the family and because I know you need money to survive in the world. I’m going to pay you a predetermined amount for certain chores that I decide upon. I’m also going to stop buying you all the stuff you ask for, and you’re going to buy these things with the money you earn for the jobs and tasks I have given you. If you choose not to do what is asked, the first consequence will be that you won’t get paid, and the second consequence is you won’t have the money to buy what you want. It’s a privilege for you to earn the money, not a right. So, I’m happy to give to you, but you must contribute to the family in order to receive.”

Setting the rules and being consistent with consequences is key for the Allowance game to work for you and your child. Remember – no matter what you’re teaching your children, you need to be clear about what is expected and what will happen if they don’t do what is expected.

Subscribe to Our Newsletter! Name Email   New York Times best-selling authors Mark Victor Hanson and Robert Allen give a powerful foundation for Prosperity 4 Kids creator Lori Mackey. "Finally, a Real Piggy Bank that teaches life's 3 most important financial lessons to kids instantly. I love this product and want every kid to have one starting at birth." Mark Victor Hansen Co-Author of Chicken Soup for the Soul and 79 more New York Times #1 best-selling titles "Just imagine where we would all be, if we were taught this valuable lesson as children. Prosperity 4 Kids is a wonderful way to start your child on the road to financial success." Robert Allen Author of New York Times #1 bestsellers Multiple Streams of Income, Nothing Down and Creating Wealth I had the absolute privilege of personally coaching Lori Mackey at the beginning of her entrepreneurial career. I congratulate her for creating Prosperity4Kids, Inc.,  a cause-driven idea for kids that will assist today's children in becoming our society's entrepreneurs of the future. I am proud to have been a small part of her vision. Jeffery Combs, President Golden Mastermind Seminars, Inc.