I have really struggled with the concept of allowance. Many parents give allowance to their children, many parents don’t. Some parents give their children allowance only if they complete their chores, homework, and other requirements; other parents give their children allowance regardless. I am not saying one way is better than the other. I am simply writing about what I am currently doing with my children.
After much discussion with my kiddos on saving and spending money, I have been giving them a weekly allowance. It is a fixed number for both children. My son’s allowance correlates with his age and the same with my daughter’s allowance. They receive their weekly allowance for being “good citizens.” This includes them completing their homework, chores, and anything else on their lists. If they do not complete their weekly homework, chores, etc. then I will subtract a certain amount from their allowance (this has yet to happen). I decided to do this, to mimic the “real world.” (If adults don’t complete their work, they most likely do not get a paycheck or will get a pay deduction…or get fired!). If my kiddos want to earn money in addition to their allowance, they can “work” for it by doing additional chores. I think of this as “overtime” or “bonuses.” Again, I am trying to prepare my kiddos for life, not keep them in a “bubble.”
Even at a young age, my children understand that when they receive allowance or any monetary gift, they are to put half into “savings” and half into “spending.” The “savings” remains untouched, yet their “spending” cash can be used to purchase needs and/or wants. We are beginning to work on price comparison shopping, coupons, and sales. Even though my children are young, I believe it is important to teach them about money now as I want them to be knowledgable and responsible with money.
Some children’s books about money:
Some children’s educational toys and learning resources related to money:
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