Giving children pocket money has become common practice among many parents, yet one finance expert believes doing just this is bad for children – in fact, he controversially has claimed that it is akin to child abuse.
Professor Lewis Mandell, who works in finance and managerial economics at SUNY Buffalo, believes that offering a continuous, unconditional allowance to children regardless of their actions is not only ineffective, but harmful to the child. Mandell feels so strongly about the matter that he declared that giving a regular allowance is one of the most irresponsible things a parent can do.
His argument is based on the idea that teenagers who receive a regular allowance will be more likely to be a ‘slacker’ later in life and will have poor financial management skills.
While his views are extremist, he does pick up on an idea many other finance and parenting experts highlight – the need to teach children good habits when it comes to money.
In order to make allowance work, parents must be prepared to sit down with their children and discuss money management. The problem is that 75% of parents either don’t have the time or aren’t equipped with the knowledge to pass it on to their children.
Source:http://business.time.com/2013/03/26/expert-paying-kids-allowance-is-cruelty/
