Rima Grace

So a parent is not necessarily giving their kids just the maximum amount of money that they can afford to spend on the kid that week or that month.

So a parent is not necessarily giving their kids just the maximum amount of money that they can afford to spend on the kid that week or that month.

It's more about, I'm giving you this arbitrarily limited amount as a way to teach you what it means to run up.

It's more about, I'm giving you this arbitrarily limited amount as a way to teach you what it means to run up.

Right, exactly.

Right, exactly.

But then there's also for...

But then there's also for...

especially poor working class families.

especially poor working class families.

And a lot of cases allowances do seem to function, you know, it's absolutely wrapped up in lessons too, but it's just also more practical of like, this is the money that we can afford to spend this week.

And a lot of cases allowances do seem to function, you know, it's absolutely wrapped up in lessons too, but it's just also more practical of like, this is the money that we can afford to spend this week.

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.