Rethinking Allowance: Stop Paying Your Teens to Exist

FinStrike helps teens build real-world money skills through a four-year financial literacy curriculum, a Smart Tutor that helps students around the clock, and extensive free resources for parents and students.

Most parents hand out allowances to teens like clockwork. Friday hits, cash is in hand, no questions asked. Feels harmless, right? But, here's the deal. You're accidentally teaching your teen something dangerous:

"Money magically appears."

Adulthood doesn’t work like that. Money isn’t a guaranteed weekly drop. It’s tied to hustle, effort, and creating value. If your teen doesn’t get that early, they’re in for a rough ride.

Earned Money Changes the Game

Here’s why the kid who earned their cash mowing lawns thinks twice before dropping $30 on fast food: they felt the sweat behind those dollars. They understand the real costs associated with that money: time, effort, and energy.

On the flip side, handing your kid cash just for existing creates the wrong mindset. They learn that money’s easy. That it’ll always show up. Then real life hits and they’re baffled that money isn't easy anymore.

Part-Time Jobs Aren’t Optional

Some parents worry about distracting their kids from academics or sports. I get it. But we’re not talking 30-hour weeks. Even five to ten hours a week can be transformative.

A part-time gig at 16 isn't about building wealth. It’s about building character. Your kid learns responsibility, punctuality, and how to handle pressure. They’ll get real experience managing a schedule and juggling commitments. This isn't theoretical. It's teaching real-world success.

Here’s a Better Approach

You don’t have to eliminate allowances entirely, but you can tweak the rules to help your kid level up:

• Tie allowance directly to meaningful chores. Not just the basics like making their bed.

• Offer bonuses for tasks that require real effort or creativity.

• Encourage your teen to pick up small side hustles like babysitting, reselling sneakers, or tutoring.

• Let them fully manage the money they earn. Yes, even when they mess up.

This isn’t about punishing them or making life harder. It’s about giving them a taste of reality early, while the stakes are low.

Because the harsh truth is, if they don’t figure it out now, they’ll pay for it later.

At FinStrike, we’re all about helping your family avoid learning these lessons the hard way.