But who uses cash these days?
Updated: Aug 4, 2019
OK, yes, it may feel a little archaic handing your kids cash for their allowance, when you can't remember the last time you paid for anything without a tap or a swipe.
But maybe that's the very reason kids should get their allowance in cash. The concept of money is one thing for a child to try to understand. The concept of money that exists as a value in your bank account is another. No wonder kids these days are puzzled when we tell them that we won't buy them something because costs too much. In their minds, the solution is easy - you just put the card in the machine, and then the store lets you take it home. So clearly if you're saying no, you're just being mean.
I want to understand what money is - the thought of them heading off to university, with temptations of credit cards, terrifies me!
Now, we're not perfect. While our allowance system is based on cash, all of our purchases are not necessarily. Often times, I will make the purchase with them at the store, and they will then give me the cash out of their allowance when we get home (which I can put back into the reserve, and recycle them into allowances again).
As kids age, the concept of a bank account becomes more clear. You may even want to move one of the pockets (like Savings) to their bank account, so that they begin to understand how these systems work.
Plus - doesn't every kid deserve that experience of counting their money to see how much they have....admit it, you remember doing that as a kid!