I suppose a better way to frame that question is: Should you cut your children’s allowance in a recession even if your income may not have been affected?
I’m looking for opinions and comments on this because I don’t know the right answer, but I’m inclined to think that depending on the age of your spawn it might be a fantastic idea. I have no children of my own which is why I’m looking for your input.
This idea was suggested to me a few weeks ago and I’ve been thinking about it ever since. By NOT cutting a child’s allowance (for any reason), perhaps this perpetuates the “invincibility” mentality of younger adults. I have a feeling that some young adults feel that there might always be someone there to bail them out because parents can be too accomodating… or they’ve just never experienced financial hardship.
So if money has never been a concern, it’s easy to see how one can develop bad habits with respect to managing it. With so much attention on the economy and stock markets I imagine it would be as prime a time as any to cut a child’s allowance as you could partly justify it with all the attention in the media! :)
So my question to all the parents out there (and anyone else really) – what do you think? Do you think this could be used as an effective way to teach children more about managing money?