Allowing Allowance


BFA-Child-Financial-Planning

Our girls are now nine and seven, and lately our eldest has been asking for an allowance. All three parents grew up with allowance once we reached a certain age, so we weren’t opposed to this concept, but we definitely wanted to have some shared goals in rolling this out to the kids.

 

 

  1. We didn’t want to tie doing basic helping tasks to a monetary reward. We all help take care of our home because we love our home and each other. We don’t want anyone to feel like they are getting paid to do the tasks that we’d like to nurture some pride in.
  2. We didn’t want the girls to get competitive over allowance. Rather than tie monetary value to chores, we agreed on a set amount per week that was the same for both girls. These two monkeys will compete over who can get the most air. Homeschooling them is going to be a real trip.
  3. We wanted to teach the children smart money management, social responsibility, and some value around money.

Here’s what we did:

Using the Melissa and Doug Responsibility Charts that we bought for the girls a while back, we create a list of suitable household responsibilities that were the same for both girls.

On a Sunday night after dinner we let them know that now that they are seven and nine years old, we felt like they were at the right age to take on some added responsibility in our home. We directed them to have a look at their charts and had a chat about what their responsibilities were, and how we expected them to take pride in caring for our home together.

We let them know that another part about growing older and more responsible was being given the responsibility of a weekly allowance (here there was much cheering and celebration) and that every Sunday they would each receive five dollars.

Then we explained that an allowance was a great responsibility because it helped them learn how to be respectful of money. We let them know that they could spend or keep two dollars of their allowance, and that they would save two dollars of their allowance, and give one dollar of their allowance to our family charity of choice – the Aga Khan Foundation .

To keep their allowances straight, I got them colour-coded glass jars from Dollarama, with one for each portion of their earnings. We’re also keeping track of our wages in a spread sheet, and (probably after the move) we’ll open a bank account for each girl.

Generally, it’s going very well, with the exception of the time we were over a week late with paying out, and my mother suggested we add a dollar of interest. The kids definitely thought that was a good plan!

How have you handled allowance with your kids? How are you teaching them to be responsible with money?

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One thought on “Allowing Allowance

  1. Good plan kids. Kids need to know that money does not grow on trees and that it takes a lot of responsibilty to manage it correctly.

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