Comments on: On introducing allowance

By: Teach your preschooler about money

Teach your preschooler about money — Wed, 11 Jul 2012 03:15:52 +0000

[...] On introducing allowance – Find out the lengths we go to in my house with our first kid. Why do I think all bets are off by the time kid number three needs money? [...]

By: How do you model giving back?

How do you model giving back? — Tue, 27 Mar 2012 19:11:07 +0000

[...] son has a “give” component to his allowance, and we discuss giving money to the charitable organization of his choice. He has given to his [...]

By: RookieMom Heather

RookieMom Heather — Sun, 05 Jun 2011 20:23:22 +0000

@CM we arbitrarily picked the amount of $100 down from the $zillion it started out to be. I was shocked at how quickly he got there.

@Julie, you raise some very good questions for which I have not yet found the answers. We have (so far) been sending all the birthday and holiday checks off to our 529 college savings plan and the kid has been none the wiser. What do you think is fair? Maintaining the split… getting a little spend infusion? I hesitate to try to match those gifts.

As for WHAT he can spend his money on, because he’s still so young, we talk it through and agree to it. He can buy nearly any toy but probably not a big bucket of candy.

By: The Mommy Therapy

The Mommy Therapy — Sun, 05 Jun 2011 13:40:18 +0000

We do something like this for our 5 year old, and because our almost 4 year old. We started last year. Each week they get $3, primarily because I despise coins in our house with a baby and this allows allowance to be all bills.

$1 must go in the savings box, but they can contribute the whole thing if they want. $2 can be put in a piggy bank for spending. At the end of the year we match their savings box and they can take all the money to buy something big they want. Last year they each had around $60….because we started near the end of the year.

I like your idea of saving for an amount and not waiting all year though. My kids are still talking about their trip to Target to spend their money so I do think they get it, but it’s a long time to wait and we might be dealing with $200 for spending, which is a little crazy for a 4 year old.

Also, we are totally missing the giving component and that feels huge. We have them help with volunteer things but I like adding the financial contribution component.

Our 5 year old is equally fascinated with money and I am pretty sure he is going to steal from the Costco register soon because he can get so close and is so intrigued with how they got all that money. Scary.

By: Julie

Julie — Sun, 05 Jun 2011 02:49:11 +0000

Very interesting story! I have a 7 y.o. and I’ve struggled with how to deal with money he receives as gifts (birthdays, grandparents, etc.) and how much I can control what he wants to spend his money on (candy, ridiculously expensive & trashy toy, etc.). Any ideas for how to incorporate bank accounts for big savings? Also, do you have your kid put money towards gifts for friends’ birthdays? Also helping kids make wise spending decisions?

By: CM

CM — Sun, 05 Jun 2011 02:24:48 +0000

Interesting, and useful, thanks! Did he pick out something that cost $100 before he started saving, or did you just pick that amount and let him go to town once he reached it?

By: RookieMom Heather

RookieMom Heather — Sat, 04 Jun 2011 21:40:59 +0000

@Jrseygirl that moonjar looks pretty cool. I had seen a great alternative at CoolMomPicks years ago but (sadly) they went out of business.

By: Jrseygirl in VA

Jrseygirl in VA — Sat, 04 Jun 2011 21:12:50 +0000

We did something similar with our son. However stopped giving him an allowance when he kept taking the money out and playing with it. He kept putting it in his pockets and lugging it all over creation and loosing it or leaving it out where his little sister could get it and put it in her mouth. DH though $1 per years old was a good amount but I thought that 5$ was too much too. 50 cents/years old seems more reasonable to me.
This is the bank we got for him. We like it and it seems more compact than the one you have. http://www.moonjar.com/Moonjar-Classic-Moneybox/dp/B003ZJS6PO

By: Marley

Marley — Sat, 04 Jun 2011 17:32:05 +0000

I just started this with my 4 year old. Great tips!

By: Jui

Jui — Sat, 04 Jun 2011 16:20:51 +0000

Wow, this is such a great idea! I loved it. My son turned 1 last month, so I was nowhere close to even thinking about teaching finance, but now I can’t wait for him to start being curious about these things. And then, I’ll be ready with this cool save, give, spend scheme!