Rima Grace

It's actually kind of more budgetary for the family rather than just kind of a simulated lesson for kids.

It's actually kind of more budgetary for the family rather than just kind of a simulated lesson for kids.

Okay, so in the end, do you find that kids who get allowances actually grow up to be more financially literate since that's the idea, right?

Okay, so in the end, do you find that kids who get allowances actually grow up to be more financially literate since that's the idea, right?

Is there an actual connection there?

Is there an actual connection there?

Yeah, so this is actually really kind of hotly contested in the literature.

Yeah, so this is actually really kind of hotly contested in the literature.

And I would say that it kind of adds up to this pretty inconclusive picture about whether allowances work, which I think is fascinating because this is something that we've done and parents have done for over a century.

And I would say that it kind of adds up to this pretty inconclusive picture about whether allowances work, which I think is fascinating because this is something that we've done and parents have done for over a century.

There is research that shows that kids who receive allowance payments early in life don't actually, it doesn't really have a significant impact on their likelihood of carrying a credit card balance later or opening a bank account.

There is research that shows that kids who receive allowance payments early in life don't actually, it doesn't really have a significant impact on their likelihood of carrying a credit card balance later or opening a bank account.

That's surprising.

That's surprising.

Yeah, it doesn't necessarily have a market difference.

Yeah, it doesn't necessarily have a market difference.

This is quite a difficult thing to research because allowance is a really broad catch-all category, and you don't actually know exactly what each parent is doing and how devoted they are to it.

This is quite a difficult thing to research because allowance is a really broad catch-all category, and you don't actually know exactly what each parent is doing and how devoted they are to it.

So it's harder to measure the outcomes that way.

So it's harder to measure the outcomes that way.