Friday, July 11, 2008

Allowance - How Much?


We took our children to the bank a few months ago and had them all open up savings accounts. They seem to get a lot of money on their birthdays and holidays from extended family and friends. We have always let them spend their money on whatever they want. We jump into the car and run to Toys R Us, Best Buy...wherever it is they think they need to go at the time. I think we can all relate to that. The money was sent for a gift...so lets get a gift! :)

Then what do you do when you are shopping at Target or wherever and the kids start asking for things? If yours are like mine, they get bummed out that you won't buy the toy...but by the time they are back in the car...they have forgotten what it was they were wanting. So we made some new policies at our home few months ago. Here they are:

1. 10% of what they receive must go to the church

2. 50% must go into the bank

3. What is left after that goes into their piggy bank at home (this is their spending money)

4. Mom and Dad are no longer buying any toys, ipods, ds games, etc EXCEPT for holidays and birthdays.

5. They get $5.00 a week (they chose to be paid monthly = $20)

6. When you have decided you want to spend your money...you must wait 10 days before purchasing the item. This allows them to think through the purchase and be sure they really want it.

I am just curious what you do with your children...and if $20 a month is too much or too less or just the right amount. Or if you have any other ideas?

7 comments:

Cathi Hamen said...

thats about what we do too... we also recycle still, total pain but worth it it.. if the kids go with me they get to split the money and they disburse b/t church , bank and wallet.. i have made them wait before purchsing also so they know if they really want to buy it... good practice with me too for shoes!!!!
healthy choices you are teaching, hopefully forming habits that will last a lifetime so they can be rich and take care of you & tom!! :)

Unknown said...

I love the way you are doing allowance. It's so well thought out and it is going to teach them such good spending/saving habits.

We give Torie and Lexie each four quarters each week. One quarter goes to church, the other three go in their piggy bank for future Target trips.

As they get a little older and start to understand money better (and want more expensive things!), I want to use something more like your plan where savings is also involved.

I think it's great that you don't buy them treats all the time-just birthdays and holidays. All of our kids have way too much stuff anyway!

The waiting 10 days is awesome. Talk about delayed gratification. If only could be that self-disciplined!

Jen S said...

Your plan is great. We have been so inconsistent about allowance. I think I will talk to Kent about following your idea! :) Oh my goodness, do YOU wait ten days before buying something?! I should try that!!!

Senior Gordon's said...

I think you guys are doing great. Waiting 10 days is an awsome test of their desire for something. When Blake was growing up we tried different scenarios. What worked at one time did not work later on. We had to keep changing to keep him interested.

Nyla said...

I wish I waited 10 days before I buy what I think I want! I am trying...but it is so hard...something that I want my kids to learn because I am still learning it!

Blake and Hollie said...

I think teaching your children about money is very important and I think you are doing a terrific job.

We give Khari and Malachi $3.00 every week. They are allowed to spend whatever they want on it. Malachi has quite a lot in his wallet and Khari NEVER has any. She is a spend-a-holic. So she knows she never gets anything. Malachi saves and affords the things he desires.

We have savings accounts for each of the kids that we opened for them at birth. We put equal amounts of money into them throughout the years. I am going to start a direct deposit so money flows in monthly.

Rebecca said...

Wow that is so great. I have no respect for money, but I'm working on changing that. We followed Dave Ramsey's program and are debt free! I also bought his kids program for my husband's brother's kids.

Teaching them the value of money is an awesome thing. BTW...when I was visiting Hollie, I gave Khari a dollar for putting my clothes from the washer into the dryer and Malachi got a buck for giving me peace and quiet for 15 minutes . I'm terrible!