Why you should never tell a kid they're getting an 'allowance': Dave Ramsey

Even a kindergartner can begin doing some age-appropriate chores around the house

Editor's note: Money expert Dave Ramsey is CEO of Ramsey Solutions. He has authored seven best-selling books, including "The Total Money Makeover." His radio show "The Dave Ramsey Show" is heard by more than 16 million listeners each week on 600 radio stations and multiple digital platforms. Each week he answers a question about personal finance in his "Dave Says" column. 

Dear Dave,

My wife and I are trying very hard to save money and pay off debt, but we’re not making progress as quickly as I had hoped.

What do you think of the idea of putting a hold on our son’s allowance for the jobs he does around the house until we get into a better financial situation?

Kellen

Dear Kellen,

Kids should learn at an early age that money is connected to work. Even a child who’s in kindergarten is old enough to begin doing some age-appropriate chores around the house.

WHO IS DAVE RAMSEY?

I admire your drive and determination to get out of debt, but if it were me, I wouldn’t stop the process. I would, however, stop calling it an allowance. There’s a victim mentality attached to that word.

He’s doing work and reaping the rewards.

We did this kind of thing in our home with our kids, but we called it a commission. We kept it very simple for them, and very affordable for us.

If they did their jobs, they got paid. If they didn’t do their jobs, they didn’t get paid.

It didn’t take long for them to make the connection.

Don’t let these teachable moments slip away, Kellen!

—Dave

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