Dave Ramsey Tells Parents To Stop Giving Allowances — 'If You Don't Do The Work, You Don't Get Paid'

Financial expert and radio host Dave Ramsey is urging parents to replace traditional allowances with a "commission system" that teaches kids the value of work, money, and responsibility from an early age.

‘Work Creates Money': Ramsey Says Kids Should Earn, Not Receive

In a recent response to a listener named Camilla, Ramsey explained that children should earn money by completing specific tasks, not receive it automatically, reported Ktar News. 

"If you do the work, you get paid. If you don't do the work, you don't get paid," he wrote. The system, he said, helps kids build an emotional connection between effort and reward.

From Chores To Checking Accounts: Teaching Real-World Money Habits Early

Ramsey suggested tailoring responsibilities by age. Younger children might earn small amounts for simple chores like cleaning their rooms, while older teens should take on more complex tasks and begin managing their own checking and savings accounts with parental oversight. 

"By the time they're 16 or so, they should know enough about money and how to handle it properly," he said.

He also encourages parents to teach children to divide their earnings into three categories: giving, saving, and spending — habits that prepare them for real-world financial decisions.

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Ramsey Warns Families Against Financial Chaos And Easy Money Habits

Ramsey told a caller on The Ramsey Show that her family's money troubles came from poor planning, not low income.

Despite earning $150,000 a year with no debt, she felt "super tight." Ramsey said the problem was "disorganization," advising her to plan spending in advance and assign "every dollar a job."

He also urged parents to stop bailing out adult children who misuse financial help, saying real support should build independence, not dependence.

Ramsey also shared core lessons, starting with, "Money comes from work, not from other people."

He said paying kids commissions instead of allowances teaches responsibility and discipline, adding, "If they learn how to save for a Barbie today, they'll know how to save for a car or house tomorrow with no debt."

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