Allowance

Justin & I are just trying to figure out allowances as the girls will be 6 next month and we feel it's a good time for them to start learning about money, budgeting, saving etc.

So do you do allowances in your home? If so, how have you set it up? Have you tied it to chores or not? How much do you give and how often?

 

I tie it to small chores-like making their beds, cleaning their rooms, helping put groceries away, helping to feed and brush the cats, vacuuming and sweeping (I assist with that).  We give 1.00 a week and they have little wallets they put it in and they can save it up for something they want (right now they are saving it towards snackeez cups but I said let's read reviews on them because you don't want to waste your money on something that's going either break quickly or not work right).

 

We've tried to do it. Last year went fairly well with the 6 year old and two 8 year olds.  My son was VERY good about remembering to do them but the other two needed constant reminders that I hated to do.  I understand my 6 year old needing reminders, but my daughter is admittedly lazy and just wants to do 'fun' things.  So, eventually I stopped paying them for them because it was more work for me. 
 
Half the money earned goes in the bank and the other half went for a purchase of a wii game (they pooled their money together.).  After the game was purchased was when they really laxed on doing their chores.   

 

We tie money to chores.  There are certain things they do because "they live here too".  And certain things can be done to earn money.  Right now, my kids are doing a lot of extra cleaning of the play room and their rooms because my parents are getting ready to visit.  They clean their own bathroom.  That all falls into the "do it because you live here too" and "I'm your mother, not your maid" categories so no money.  Timothy has been helping mow the lawn.  He's getting paid for that because it is extra. When the kids do extra things like wash cabinets and clean baseboards, those they usually get paid for.  If they want to save up for something, they'll usually ask for extra chores.  
 
My dh never had an allowance growing up.  He worked in his parents small business.  He is pretty adamant that the kids need to work for money. He views an allowance as an unreal view of money.  As an adult, nobody gives us money just because.  We have to work if we want money.  
 
This has worked pretty well for us.  The kids take pride in being able to earn their money and they spend if very carefully because they know what it took to get that money.  This has also evolved into a bigger discussion this summer into what they can do as they get older.  Timothy is realizing that a lot of our neighbors hire older boys to mow their lawns.  He is very motivated to get where he can mow and weed-eat by himself  to start doing that.  He's an athletic kid that likes being outside so it suits him.  Sarah is realizing that she can probably take a baby-sitting class through the local college next summer that includes first aid and cpr and get a small baby-sitting/mother's helper job started soon.  She's good and patient with little ones and we just got a new neighbor with 4 little ones and our neighbor that we're good friends with just announced she's expecting #3.  The kids are motivated to earn their own money.
 
A funny story about kids and money.  I was working book fair at the school once when a 5th grade class came in.  There were the usual few kids wandering around trying to bum money off of other kids.  I still remember the boy who looked at them and said, "NO!  I had to work all summer, helping my dad roof in the hot sun to earn this money.  No way am I giving you any of it."  
 
Marissa

 

We tie regular allowance to regular chores.  They started with $5/week, where they could spend $3 and had to save $2.  We upped each by $1 when they turned 8, so now they get $4 to spend and $3 to save.  They have jars labeled spend, save, and give.  So sometimes they put some of their spend money in their give jar (for church or school charity events).
 
I also have  a "work for hire" board.  They can normally earn $1 for various extra chores (ie. sanitizing all the door knobs).  Their Friday sitter is at camp this week (I work from home), so I told them this Friday I'd give them each $5 to wash all the window sills and clean inside the window (which will be a big, dirty job). Work for hire is totally at DH and my discretion if we think of something we want done and they can work on.
 
I have one who likes to save up her money for big ticket items (she's currently saving for an iPad Mini) and one who loves to spend, spend, spend as soon as she has money. They never work together on anything!

 

My kids get allowance, and they do have basic chores to do (clean the bathroom, empty dishwasher, make their beds, tidy up)  They currently get $6 a week (they are 10 and 13).  They must put $1 in a jar for charity, $2 in a jar that is savings (goes in their bank accounts) and $3 for spending.  If they want a big ticket item, they must save their spending money.  They can earn extra by doing yard work and such at home.  When they were younger they started at $4 and then went to $5.  Now that they do more around the house it is $6.

 

We started allowance last yeast in Middle School (6th Grade).  They get $10 on the 1st and 15th, it it not tied to chores, as they are mandatory in our house, cause they live there.  Isidra is very good at saving her money, and takes her time spending it.  Isabel, on the other hand, has to spend it almost immediately (mostly makeup and candy).  They can earn extra money for helping with unsual chores, and cleaning baseboards, or raking leaves, etc.

 

Mine have done chores, increasing in complexity and number with age, since they were small, because "we're a family and we all work together to run this house."
 
I started giving them allowance I think when they were 8 or 9. They get $20/month. It goes directly into savings now (because electronic transfers are easier for me, and because I was no longer comfortable keeping all the cash they'd built up in the house), but I act as banker.
 
Sometimes I offer bonus chores for extra money, or someone looking for extra money can ask for extra chores. Allowance is not tied directly to chores because I pay once a month and that's too separate in time, although for major infractions I would consider docking their allowances. We talk about money and financial planning (that's what Daddy does), and they know the purpose of their allowance is to teach them how to handle money while they still have a safety net.