Kids Allowances

[Atlanta Cracker]

Just curious if any of your kids get allowances and how you set them up.

 

 

I find that I use a random combination of parenting skills that I have heard about and/or read about from time to time that don't necessarily all work together. Case in point: I am in the PGA superstore with my 3yo son yesterday and at the checkout line he grabs a bag of Twizzlers and starts pitching a fit when I go to take them away. So, I used a trick I heard about and told him ok, he could get them but he was going to have to pay for them. When I asked him if he had any money he said "no but you do daddy." Once I told him that I wasn't giving him money for the candy he said "Maybe the nice wady (the cashier) will give me some money." So I say ok, we'll ask her. He's calm until we get there. I checkout. I tell the lady that he wants the candy but doesn't have any money. She asks how he is going to pay for it and he asks her if she has any money. "None that she can give him." was the reply. So I take the candy back and tell him we'll have to come back and get it when he has some money and though there was a little bit of crying it was much better than if I'd just snatched them away the first time when we were in line.

 

Anyway, all this leads to his question in the car on the way home of "How do I get money daddy?" So, switching to the next parenting tool I'd heard of, I said that it's time he start receiving an allowance so that he can buy things he wants without asking mommy and daddy.

 

My plan, based on a few different things I have read is this:

- He gets $1 for every year old he is once a week on Sunday ($3/week now)

- The money is neither a reward or punishment for anything, he gets it every week. Other issues are handled seperately.

- He can spend the money on whatever he wants, but when it's gone - too bad and no asking mommy and daddy for stuff at the store.

 

That's about as far as I've gotten. I would like to teach him about saving at some point and offer to match part of it but I don't know if he's ready for that as a 3 year old.

 

Any other thoughts? What do you do?

[Double Agent]

This could be a great thread with some good advice. My son is only 22 months. The only money I give him is a dollar for his church contribution and then random quarters that he can put in his piggy bank. We want to get in the habit of him taking a dollar out of his bank every Sunday morning to give at church. We haven't got there yet so I just give him a dollar out of my wallet before church and he puts it in his pocket. The day is approaching where he needs to get some sort of an allowance and learn that whole process. We probably have another year though.

 

I can't really remember my allowance as a small child, but once I started driving (early 90's) I think my allowance was $100 a week. I used that money for gas, food outside the home, misc. expenses, and fun. It would take an act of Congress for me to get a $1 more if I ran through that money. I had a crap load of chores I had to do for that money. I'll do something similar when my kids start driving. The idea is to teach them to manage money.

 

I can't remember if it was a Dave Ramsey book or The Millionaire Next Door...but they talked about putting your teenagers on a commission. And when that money is gone...they have to wait until the next paycheck. No exceptions.

[Big Country]

My son is 3. No allowance yet but I have been thinking about it. I too am interested in the responses.

[KevinL]

The system we have worked out is this: No regular allowance for elementary kids. We buy them what they need.

 

Allowance starts after you finish 6th grade and is $3 per week per year of age. Our 15-year old gets $45 per week. She buys her own clothes out of that and whatever else she needs / wants.

[Ramhock]

No regular allowance for kids. We buy them what they need.

[untateve]

My boys are 8 and 11. No allowance to date. They are responsible for keeping rooms clean, making beds, and doing dishes, taking out the trash as well as a few other odds and ends. I've recently had my 8yr old complain that he's working for free. I asked him how much do I and mom get paid for cleaning the pool, cooking dinner, laundry, and all of the other household duties? I asked him if he wants to start chipping in money for the electricity, the food, the mortgage, his clothes, our vacation?

 

I explain to him that we're a family and there are certain responsibilities we have as family members. He seems to understand it even if he doesn't like it. Of course, he spends any money he has as soon as he gets it while his brother is a saver.

 

Now there are times when either of them wants to buy something that I will find a "special job" for them to do and pay them for it. They'll also be mowing and Josh Gordon wacking the lawn starting in August and I'll probably give them each a few dollars for that.

[Perchoutofwater]

I have two girls, 7 and 10. My 7 year old doesn't get an allowance. The 10 year old gets $5 a week for cleaning the restrooms. The 10 year old also started working in my office today on a part time basis. She will probably work about 4 to 6 hours a week, doing tasks she can't screw up. She will be paid minimum wage for this. It was her idea, and as long as we have enough to keep here busy a few hours a day a few days a week, and she is productive she will do this the rest of the summer. If she isn't I'll fire her ass, as I wouldn't want to be accused of nepotism.

[westvirginia]

My boys are 8 and 11. No allowance to date. They are responsible for keeping rooms clean, making beds, and doing dishes, taking out the trash as well as a few other odds and ends. I've recently had my 8yr old complain that he's working for free. I asked him how much do I and mom get paid for cleaning the pool, cooking dinner, laundry, and all of the other household duties? I asked him if he wants to start chipping in money for the electricity, the food, the mortgage, his clothes, our vacation?

 

I explain to him that we're a family and there are certain responsibilities we have as family members. He seems to understand it even if he doesn't like it. Of course, he spends any money he has as soon as he gets it while his brother is a saver.

 

Now there are times when either of them wants to buy something that I will find a "special job" for them to do and pay them for it. They'll also be mowing and Josh Gordon wacking the lawn starting in August and I'll probably give them each a few dollars for that.

 

You have a pool? Rich bastage.

[CaP'N GRuNGe]

My son is 3. No allowance yet but I have been thinking about it. I too am interested in the responses.

 

Same here with my 3.5 year old daughter.

[Ursa Majoris]

Used to give mine a dollar per week x their age up to age 18, when it capped out / stopped. I paid it out monthly so if there were four Saturdays in the month they'd get age x 4, if there were five Saturdays, they'd get age x 5. It wasn't a lot of money and that was deliberate, to teach them the value of money and force them to think about what they wanted to spend it on. No chores were required for this. Chores such as mowing the lawns were paid extra.

[untateve]

You have a pool? Rich bastage.

 

you know, in florida, it's relatively common to have a pool.

[REZ]

you know, in florida, it's relatively common to have a pool.

 

Probably 80% of the houses in my neighborhood has a pool.

None of us are rich.

 

I never give an allowance to my kid. We buy them what they need and will usually let them do one thing on the w/e (movie, go out with friends) and just give them the money to cover. If they want to do something more expensive or multiple things, they have to do extra chores (clean pool, pull weeds, watch the little brother) to earn the money.

[millerx]

Anyone remember that "Cosby Show" episode where Theo gets a taste of what it would be like to actually live in the real world?

The one where Bill Cosby gives him the money and then takes all of back in small increments after stating all of things he will have to pay for?

 

Classic!

 

If I could find a video clip of that, I would definitely show it to any kid who thinks they DESERVE an allowance.

[Marauders11]

good thread here- no allowances yet for my kids, but this does have me thinking.

[Double Agent]

I think the big reason why I want to do an allowance is to teach them money management. I don't like the idea of them asking for money everyday and me having no idea where it's going.

[Atlanta Cracker]

I think the big reason why I want to do an allowance is to teach them money management. I don't like the idea of them asking for money everyday and me having no idea where it's going.

 

 

That's my point as well. I'd much rather my son make financial mistakes at an early age that aren't very costly. Actually, the whole point of the allowance is so that he will make mistakes. I know when he gets that first $3 he'll spend it the first time he's in a store! The next time he'll learn the lesson.

[cliaz]

We had a kid who lived down at the end of our street who was around 13 years old. His parent got him one of those paid debit cards that they could transfer money into for him every month for his allowance. The kid got $100 a week . Much different than my 75 cents a week in the early 80s.

[Double Agent]

We had a kid who lived down at the end of our street who was around 13 years old. His parent got him one of those paid debit cards that they could transfer money into for him every month for his allowance. The kid got $100 a week . Much different than my 75 cents a week in the early 80s.

 

What's a 13 year old going to do with $100 a week? Now if they make him chip in on bills with that money, then that might be good thinking.

[SheikYerbuti]

Anyway, all this leads to his question in the car on the way home of "How do I get money daddy?"

 

My dad and I had the same conversation. . . .last year.

[T-Scorp]

I give my 8 and 6 year old an allowance and then take make them save 1/2 in the bank. Trying to teach them to save. We go to the bank and make the deposit. I do the same with B-day/X-mas/ and dog sitting money. They didn't like at first but then when they want a big ticket item (American Doll Girl or horse riding lessons) I tell them they can take the money from their savings and I will pay half. They then see the value of saving. Plus they don't spend their money on little trinkets or usless junk.

[myhousekey]

Anyone remember that "Cosby Show" episode where Theo gets a taste of what it would be like to actually live in the real world?

The one where Bill Cosby gives him the money and then takes all of back in small increments after stating all of things he will have to pay for?

 

Classic!

 

If I could find a video clip of that, I would definitely show it to any kid who thinks they DESERVE an allowance.

 

I think this is what you were looking for.

 

 

Edit: Oh and we don't give our 10 mth old girl any allowance...mainly because she would probably just try and eat the money.

Edited June 27, 2008 by myhousekey

[millerx]

I think this is what you were looking for.

 

Edit: Oh and we don't give our 10 mth old girl any allowance...mainly because she would probably just try and eat the money.

Thank You!

 

It's been a while since I originally saw it...I guess I was off on the lesson he was teaching Theo (it was about grades and getting a good education) but I still think it fits with the topic of long-term thinking that kids need to learn about money.

 

That truly was a good family show. More people should listen to Bill Cosby...

 

As I said before...CLASSIC!

Edited June 27, 2008 by millerx

[Perchoutofwater]

I give my 8 and 6 year old an allowance and then take make them save 1/2 in the bank. Trying to teach them to save. We go to the bank and make the deposit. I do the same with B-day/X-mas/ and dog sitting money. They didn't like at first but then when they want a big ticket item (American Doll Girl or horse riding lessons) I tell them they can take the money from their savings and I will pay half. They then see the value of saving. Plus they don't spend their money on little trinkets or usless junk.

 

I like this idea. Thank, I'm going to do this with my kids.

[Ursa Majoris]

I give my 8 and 6 year old an allowance and then take make them save 1/2 in the bank. Trying to teach them to save. We go to the bank and make the deposit. I do the same with B-day/X-mas/ and dog sitting money. They didn't like at first but then when they want a big ticket item (American Doll Girl or horse riding lessons) I tell them they can take the money from their savings and I will pay half. They then see the value of saving. Plus they don't spend their money on little trinkets or usless junk.

This could be a model for most people to follow as far as allowances go. Very well thought out.

[untateve]

I give my 8 and 6 year old an allowance and then take make them save 1/2 in the bank. Trying to teach them to save. We go to the bank and make the deposit. I do the same with B-day/X-mas/ and dog sitting money. They didn't like at first but then when they want a big ticket item (American Doll Girl or horse riding lessons) I tell them they can take the money from their savings and I will pay half. They then see the value of saving. Plus they don't spend their money on little trinkets or usless junk.

 

I like this idea, particularly for my 8yr old. My 11yr old knows how to save his money. He once saved up $100 to buy a remote controlled robot and right now, he has about $250 saved up. They're both going to be mowing and Josh Gordon wacking the lawn in August. I think I'll pay them and force them to save half in the bank.