Yes, we give our kids allowance. And we have been doing so for over 2 years. Before we started, I read a lot about allowance and teaching kiddos about money. There are a lot of different opinions and thoughts regarding the matter. It can be quite controversial. I'm not trying to stir up a pot- this is how we do it and it works for us, so I thought I'd share.
At the beginning of every month, our kids get allowance. They do not have to earn it, they are given it. Chores are an expected part of being in our family, piano practicing is part of being in this family - you do not get paid for it. Tom and I had different opinions on this at first, but I think you have to figure out the purpose of allowance. Our purpose is to teach our kids about money. We use other things to teach about working hard or about responsibilities. Allowance is about money and I think it's hard for a little one to budget and plan when you don't know how much to prepare for. That can come later in life. Right now we are just working on the basics.
Anyways, we give them $1 for every year. My six year old gets six dollars a month and my nine year old gets nine dollars a month.
I stop by the bank every month and get ones and rolls of dimes. They have to pay 10% tithing and 10% savings. Everything left over is theirs to spend. I use the roll of dimes so they can trade dollars for dimes - it's easier for them to count and make change.
Tithing goes in their tithing jar and savings goes in their piggy banks.
The rest goes in their wallet, aka a pencil pouch.
They are responsible for recording every penny that comes in and comes out. I like them to be able to see what they are spending their money on.
Because they get their own money, we don't buy things/stuff for them unless it is for some occasion. If they want books from the book order, they have to use allowance.
My oldest can not save money - it burns a hole in her pocket! But, she is learning how long it takes to save up money and how fast it can go. While we were at a gift shop the other day, she was shocked that it would cost $4 to break open a rock. She knew that if she wanted to do it, we would tell her to spend her own money. She has "wasted" a lot of money on little silly things, but I think she is finally getting it and money is becoming more valuable to her.
There is nothing fancy or elaborate about our system. I even hand write their register! If it gets too complicated, it isn't long-lasting in our home. It is simple and it works.
Do you give your kids allowance?
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