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Allowance for the kids

August 12th, 2008 at 06:48 am

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.

6 Responses to “Allowance for the kids”

  1. momsents Says:
    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.

  2. compulsive debtor Says:
    1218548418

    My daughter also gets $20 a month and has to put half of it into savings each month. I don't tie the allowance into chores, per se. My thinking is I give her the money for savings and spending and once it's gone it's gone so she has to learn how to spend wisely.

  3. little l Says:
    1218566071

    Thanks for the comments. I think what I might do is have him earn the entire amount, not sure what that is because the price varies depending on the model, but ~$300, and then match some of it (half???) so that he can keep half in his account. Still thinking about this but I do want him to learn the value of money but also be able to earn money towards things he wants. Fine line there.

  4. disneysteve Says:
    1218584854

    Our daughter is 12. She currently gets $10/week. There are no strings attached - no specific chores required - except that she has to remember to ask for it.

    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.

  5. little l Says:
    1218597050

    Disneysteve,
    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.

  6. greengirl Says:
    1218602118

    when i was little my dad used to give me 50c per year for my age (if i was 12, i'd get $6) every week. he also used to put his spare change into tubs and then i would have to do my chores to get that money, and then i would have to count it and take it to the bank, that was my savings money. Big Grin

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