So my son (12 years old) wants an Xbox. He already has a Wii that was given to him by my inlaws. I told him I was not buying him an Xbox so we agreed that he would have to save his money to buy it. He has a few chores he does around the house but I've never paid him for them. We've now agreed that if he does his chores everyday, he will get a monthly allowance totalling $20 per month. So essentially I guess I am buying the Xbox, but I figure this is a good way to teach him how the adults have to do things, i.e. go to work, get paid and save for the things they need or want, versus instant gratification.
I created an Excel spreasheet so he can log when he does his chores and what he can do to earn "bonus points". Not sure how much I will pay him for these bonus points however. I also created an account for him in Quicken, showing his opening balance (the cash he already had) and eventually his deposits.
I plan on taking him to the bank so he can open a savings account. I'm going to link it to my checking account so that I can pay him his allowance by transferring it to his account from mine, since I never carry cash.
So, for those of you that give your kids allowances, how much do you give them?
I waver between paying him an allowance and feeling like I shouldn't pay him for doing things that are already expected of him. I figure as he get older and is wanting more expensive things, now would be a good time to start him on an allowance so he can learn about the value of the dollar. Should have done this a long time ago.
Allowance for the kids
August 12th, 2008 at 05:48 am
August 12th, 2008 at 01:14 pm 1218546856
My children get $20 a month from their great grandparents who live out of state. This is strictly their spending money, thought it is based on performance of doing their chores (but they always have, so it is part of the routine rather than being tied to money). I take care of their lunch money at school. $20 a month sounds right. I would also discuss with him having short-term goals (XBOX) and donating to a charity as well. My children always give something at Church. That helps them focus less on the "me" and being away of the plight of others.
August 12th, 2008 at 01:40 pm 1218548418
August 12th, 2008 at 06:34 pm 1218566071
August 12th, 2008 at 11:47 pm 1218584854
During the school year, she uses her money if she wants to buy a drink at school each day ($1). The other $5/week is hers to spend as she wishes. When school is out, she gets the whole $10.
I would suggest that you change your plan and pay his allowance in cash. Money is already a very abstract concept to kids. Dealing in electronic transfers rather than cold hard cash makes it even more abstract. As we often discuss on the boards, if folks are having difficulty managing their money, the suggestion is always made to deal in cash and forget debit and credit cards. Kids need to start with cash before moving on to other means.
August 13th, 2008 at 03:10 am 1218597050
VERY good suggestion re paying my son in cash - I will definitely do that. I hadn't thought of it in the way you presented it.
August 13th, 2008 at 04:35 am 1218602118