allowances

[Disney Ella]

I am thinking of starting allowances for the kids. How old are (were) your kids and how much do they get? Do they have to do certain things around the house to get their allowance?

I've read articles that suggest that kids should save 1/2 to 1/3 of their allowance. Sounds good, but exactly what are they saving for? Is it supposed to be for college? Or some big thing - like a bike? If your kids have to save part of their allowances, when do you allow them to spend the "saved" amount and what are they allowed to spend it on?

 

[ByTheSea]

My son get's an allowance, one dollar per year of his age. That money is what he uses to rent video games, buy Yu-gi-oh cards, and save up for any toys or games he wants. We (supposedly, pretty much but sometimes break this rule) only buy him toys/games etc. for birthday and holiday's. Is allowance is what he needs to use above and beyond that. He has managed to save up for a few purchases that were over $100.

He does supplement his allowance by selling (well, I help) some of his cards on e-bay.

Oh, and he's 9.

 

[peg2001]

We started the allowance when DD entered kindergarten, this year. She gets $1 per week. She is expected to help around the house when we ask but this is not tied to her allowance. If she wants to earn extra money, we assign extra tasks. She will get a raise each school year. She currently has about $20 saved. We will let her spend it how she likes but she usually forgets her money at home when we go out. She loves to pour through toy catalogs dreaming about what she'd like to buy.

Peggy

 

[LuvTigger]

I don't have kids, but I used to work at a bank. I found it interesting to see the different ways parents taught their kids about money.

Two instances still stick out in my memory, even though it was a while ago...

One man taught his daughter to always put half of ANY money she received (allowance, b-day and Xmas gifts, etc.) into her savings account, and the rest was hers to do with as she pleased.

The second person was an investment specialist with the bank. She taught her son (I think he was about 10 at the time) to split all his money 3 ways: 1/3 was for him, 1/3 into a regular savings account, and 1/3 into his investment account.

I wished someone had taught me a "method" of saving. I also wish I knew about investments at a younger age.

 

[Buckalew]

DD gets 1/2 her age. She's 9 so she gets 4.50 a week. She then divides it 3 ways: 1/3 for church 1/3 for short term savings (for something she wants like she bought a bike) and 1/3 is long term.
It always amazes me what "things" kids will do w/o if they have to spend their own money!!

 

[Disney Ella]

Thanks for your replies! The kids watched the Kentucky Derby with DH and were fascinated that people could make money betting on horses. Now they want to go to a racetrack. . I think I will introduce them to the safer (relatively) concept of investing

 

[beattyfamily]

We give our older DD (7) $1 per year of her age but then she only gets half of it and the other half goes into savings...

BUT I love the concept of dividing it into 1/3s and having a portion go to a charity or Church.

I make my older DD (7) fill the dog food and water and do other little jobs around the house to earn that allowance.

Our 3 year old DD's whole allowance goes in the bank for now. Once she's about 5 we'll do the same as her big sister!