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Our next -- is backing a study that says the kids who received unconditional ounces.
They might actually draw to be quote slackers.
He joins me now Lewis Mandell professor at SUNY buffalo.
You know -- a lot of people kind of sort of agree with you but professor you actually saying.
That there's now some sort of proof on this that you guys that some research actually prove what a lot of people have always felt was already true.
Yeah I just Charles a few years ago -- running some nationwide surveys of high school seniors.
Concerned with financial literacy.
And just added a question that asks.
These kids what kind of allowance they had when they -- growing up was it.
A what we would call -- regular unconditional ally once you get fifteen bucks or ten bucks every Sunday night.
Was that an allowance.
Which you only got if you did your chores or did you have to basically ask your folks for spending money.
And I was absolutely flabbergasted.
When I found that.
The kids who got a regular unconditional allowance the kind that I got when I was a kid -- that.
My wife and I gave to our daughter.
We were just amazed when we found that those kids.
Did worse on the financial literacy questions in other words they were less financially literate.
Well we'll professor let's give us an example of the questions because I don't know that the average American you know when I hear financial literacy was and I know most Americans have a tough time with him -- -- we're the examples of the questions.
We these were all age appropriate.
Types of questions.
To see whether kids who knew whether they would earned.
A lot more if they have a college degree then if they only at a high school degree on average.
To see if they had any idea that.
Investing over long periods of time your entire career to look at in stocks is likely to do better than sticking though almost common sense that hold on the -- -- it is like that's.
It was hot -- -- call here critics thought I mean that's study sounds legitimate but -- same time.
I mean allowance is allowances would mean -- generations before ours I mean it almost feels like if you gave that allowance and they just felt like they got that on Friday when they did a good job or not you gave them the financial teachings as well -- the whole study may be blown -- Is that true I mean -- -- if I gave my -- five dollars on Friday but also let him read the Wall Street Journal with me every day.
Maybe he -- answered those financial literacy questions very well maybe it's just the -- I dating back.
I think that call you probably onto it it it is not a question of parents -- their children because.
Most parents really don't know enough to teach their children they just pass on ignorance but.
If you're an educated knowledgeable parent and you have the time and willingness to spend talking to your child.
And use the allowance is part of that you probably gonna have a very good outcome.
But research of others show that the primary reason to give your kids and unconditional allowance.
Is that -- you don't want to take the time and effort to communicate with kids and that's really what the problem -- I get a tape professor Mandell.
This is a topic we talk about a lot politically in this environment that weren't so we appreciate your time.
And the study thank you very much.
Not at all you know -- real quick to.
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