Mother, daughter disagree with Kratz kids' cashless allowance

Of all of the responses I received to a recent column on a new cash-less allowance system my wife developed for our children, one of the most interesting came from a mother and daughter.

They sent me an e-mail to say my column had created "quite a discussion" in their home, and they provided their reactions.

The mother, Linda, wrote that in her family, they believe schooling is children's "job." Thus, they pay their children for earned grades, with the amounts available increasing along with their ages.

"The rules to managing the received income (are) 10 percent tithing, 30 percent spending, 60 percent savings," Linda wrote. "Each child has their own saving accounts, and out of six kids, the oldest two hated the system, and when they turned 18, they spent every dime saved and struggle (like many of us) with managing money.

"The next two kids — currently 15 and 16 — both have substantial savings and CDs, and they manage their own bank accounts. Our 9-year-old saves, and our 5-year-old is still grasping the concept of money."

Linda wrote that she did not like the practice we have instituted of creating a kind of debit system for our children.

"It's early training for the future equivalent of automatic debits from your checking account for credit cards, or second mortgage payments or any other unsecured debt. … Managing money requires constant attention," she wrote. "Also, having the kids go to Mom for the money sets precedence for future handouts. … We reap what we sow."

When mothers keep track of each child's money, she wrote, children don't learn how to be independently responsible.

"Budgeting is probably the No. 1 priority we should be teaching kids," she wrote. "Our example as parents is crucial in changing financial habits. …

"There's merit in teaching delayed gratification, especially in a society that is full of 'have it now.' Yes, the kids know disappointment, but they also know the successful feeling of having what they've earned in cash, and they plan for what kind of purchases they're going to make. As a parent, I hope that my kids will become independent, responsible and contributing citizens to society by learning from my mistakes for the benefit of future posterity."

Elizabeth, Linda's 16-year-old daughter, wrote that she disagreed with the idea of an allowance.