How Do You Handle Allowance?

we pay our 10 yr old $3 per week, provided he's been good and done his chores. we up it on birthdays by a dollar. he didn't get an allowance till he was 5 and that was all of a quarter. he learned how to save money to pay for xmas presents this year, which was nice. he has a savings account that we put money in whenever he has a big bundle of money. we put half in and let him spend half. does he have alot saved? no, but he is learning how to spend wisely and not just on the first toy that catches his eye. we'll likely do our youngest boy's allowance in much the same way.

We started our kids at a base of $1 per year of age. We don't tie it to chores or behavior. Privileges such as TV, video games, going to birthday parties etc. are tied to chores. We started immediately putting at least half in the bank as your husband suggests. In our view that isn't to buy the big stuff, it will be spending money when they go to college and have to manage all their own money. If they want big stuff, they have to save their allowance. As they got older, we kept the bank amount at a max of $5 a week, so that they would have more spending money since kids typically do more with friends at that age and it allowed my younger son (12) to save enough to buy an ipod. We do alot of the allowance electronically, as we will often buy things for them when we shop with credit cards and I worry about kids walking around with that much cash. For example, I got a call from American Airlines a few weeks ago that my son lost his wallet on the flight during Spring Break - he had $100 cash in there! As far as taking a $1 per week as a church tithe, that's a little high - I would stick to the tried and true 10% as a suggestion - I don't think it's right to force them.

I would make the kids follow the 10-10-80 rule. Tithe the first 10%, save the next 10% and live on the last 80%. I know this isn't much for his allowance and could still cause the same problem, but I think your husband has a good idea. Making him tithe, and save will teach him good values. Also, if he spends "his" money on a toy, then you do not buy him anything except neccessities with "your" money. He will have to learn to save for what he wants. Also, a 5 year old is old enough to do comunity service, show them that their are other children who don't get what they want. This might help. My kids are not old enough to have chores, and when I was growing up I did. But I did not get an allowance. My mom used to say she didn't get paid to clean her house so she was not going to pay us. The one time she tried chores and allowance, she did the thing with "her" money and "our" money. We didn't like it and opted to not receive allowance, we got more this way.

We really don't do allowance. However, if our son does mows the lawn, we will give him $10. He likes to buy songs on Itunes for his Ipod that he bought himself, so I tell him I will buy a song for him if he unloads the dishwasher and does a few other things. I basically feel like I don't get paid for cleaning then why should anyone else, its a fact of life. I might be wrong, but we just don't have the extra money to be giving him all the time.

My son is much older, but he did get money for doing chores. I also bought Uncle Eric books of which I suggest you start with Whatever happened to Penny Candy? You have to teach them how to handle what they get and "DONT" buy his toys or candy - he does. (Yes you can make rules as to how much candy he can/cannot buy) He can also have a "garage sale" and find that his toys aren't worth much. When he buys one toy he has to get rid of another to make room for the new. I like your Husbands ideas, but also 1. make sure you are in agreement 2. you are committed to carry out what you agree on. Blessings on your family.

Greetings C.:

I do not believe in allowance. I allow my children to eat, sleep and recreate for free, therefore, I am not giving them additional money for just being a member of the household. My best friend did implement a great system with her daughter. She has a responsibility chart for her 5 y.o. Each item on the chart get a magnet, and she earns 10 cents for each responsibilty she completes. Her responsibilities range from brushing her teeth daily w/o reminder to writing her address and name. It is really pretty neat. She bought a responsibility chart from an internet company, but you could make one yourself. At the end of the week she adds up all the dimes she's earned, she counts her money, then get to shop for the week or save to the next week. Usually she will by herself something she can share with others (she's an awesome little girl). I think it is a great idea My friend bough tmy son the same chart, but we haven't begun to start the process. Mine would buy candy and I'm not ready for a cavity creep. Good luck and hope this suggestion helps.

Love and blessings,
N.

I agree with your husband and maybe $5.00 for your 5 yr old is too much. But I think chores make them feel they are earning it and teaching them responsibility but what happened with my sister is tieing it to chores after awhile the kids would do nothing without getting paid. Children need to do chores just because they belong in a family and are part of a group. They need to learn them so that when they grow up they know how. All my years I tried to teach my children to save and never was able to. My granddaughter has found her own way at age 10 to buy little things and sell them for her money. She makes her own. I just do not know how she figured this out. But the other day she bought her own clothes. The kids are crazy over these little things she buys and sells. She said she learned it from me but I do not do that. There was an article years ago in Dear Abby all about how this man handled money with his kids and I wish I had it. I do know that every birthday they got a dollar more. You also may try matching what they save like a 401 plan so they will see rewards of it grow. I also had a boss that would just give the kids their money but put what they would have saved if they saved it in a jar with play money so they can see what they missed. Good Luck. I will be needing a plan too. I hate every thing I have read is just let them spend it the way they want but I hate that and hate to see money waisted on junk. Most of us can not handle money as adults. Also you may give them certain responsibilities about what had to come out of their money such as movies and you do not give in and pay for that. Good Luck G. ( I was a bad giving in to just doing it for them and did not pay off)

Hi C., we give our daughter $5 a week for allowance, however she does not get handed the money. As long as she completes her chores then she knows that she has earned her allowance. She is to keep her bedroom and bathroom clean, wipes down the baseboards the first weekend of every month, unloads the dishwasher and any other chore that comes up. If I gave her the money every week she would have a new toy. If she wants to buy something I have to approve the purchase. She would have 20 webkins if I did not approve the purchases. She asks me every now and again how much money she has and when I tell her she gets excited. We are trying to teach her to save. I hope this helps.

Check out Dave Ramsey's Financial Peace Univeristy. They have a program for kids and allowance. One thing he suggests is "matching" the kids savings for larger purchases. For example, he matched the amount his kids saved for thier first car.

We don't give allowance. There are certain things that we all do in the house because we live here. Each year starting on their fifth birthday, each child gets a new "job" as well as a privilege. The jobs change as the child gets older. Any money that they get for whatever reason (birthdays, odd jobs in the neighborhood, etc.) half goes into the bank and they get to spend or save the other half. My 12 year old saved enough to get his own WII. We do NOT touch the money in the bank at all. He has around $700.00 dollars so far and is really excited when his bank statement comes in. The little guys can't wait for their accounts. Allowance is a touchy subject. Good luck!!

We do 50 cents per year of age; 10% tithe, with the remainder split between investing in a savings account and spending money. The kids have chores, but they are not tied to the allowance-it's just part of being a family.

We used to do it all in cash, but now that my kids are a little older, my son has a debit card linked to a checking account(in my name until he is 16)and I do bank transfers for his money. This gives him the chance to start learning to use a debit card. My daughter still gets her tithe and spending in cash, but her invest is transferred electronically.

They have plenty of money for their needs, but if we were to increase their allowance, we would expect them to spend their money for more things that we normally pay for (clothes, etc.)

There are lots of different ways to go with this. I suggest you take a look at the book "Money Doesn't Grow on Trees; A Parent's Guide to Raising FInancially Responsible Children" by Neale S. Godfrey and Carolina Edwards.