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With an entitlement mindset, a child simply expects to be paid each week.


With an entrepreneur’s mindset, a child finds ways to create value and earn money through applied creativity.


communication in a family’s approach to allowances is critical to ensuring that children learn good money habits that will serve them well for life. It’s a mutually constructive way to teach principles related to the importance of saving, spending less than they earn and consistently giving back to their community.


The answer to the question of whether or not to pay a child an allowance and under what conditions rests with the parents. The greater and more vital question is what mindset do they want to create and nurture within their children: a sense of entitlement or an entrepreneurial spirit? The founda- tional choice is theirs.


Sharon Lechter is CEO of Pay Your Family First, creator of the ThriveTime for Teens life and money reality board game and co-author of Outwitting the Devil, Three Feet from Gold and Rich Dad Poor Dad. A recognized financial education expert, she is a member of the National CPAs Financial Literacy Com- mission. Learn more at SharonLechter.com.


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September 2013


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