Family Allowances
Introduction to Family Allowances
Family Allowances, financial payments made by governments to parents to subsidize the cost of raising children. In many countries, family allowances are designed to increase populations by offering financial incentives to parents who have large families. These payments also serve as a form of welfare, guaranteeing families with dependent children a minimum standard of living.
Family allowances originated during World War I (1914-1918), when French employers and trade unions began to provide supplemental payments to workers with large families. The first government-sponsored programs of family allowances were started in Scandinavian countries and France during the 1930s. The massive loss of life during World War I, along with rapidly declining birth rates, led many European countries to offer parents financial incentives to have children. Family allowances were introduced in Canada in 1945 to promote economic growth following World War II (1939-1945).
The United States has never had an explicit family allowance, although some low-income families receive financial assistance through a program called Temporary Assistance for Needy Families (TANF). The most significant way that the United States assists families is through its income tax code. The earned income tax credit reduces the tax liability for low-income wage-earners with dependent children.” (1)
Resources
Notes and References
- Information about Family Allowances in the Encarta Online Encyclopedia
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