When my kids were babies, we set up a savings acct at our bank for each of them. Any money they got when they were very young went into their savings account ($20 checks from great aunts, $100 from grandparents... everything).
When they got older (maybe about 5yo - they're 9 and 11 now), we set up 3 envelopes for them... think of a stoplight - red, yellow and green.
The red envelope is for long-term savings - they cannot touch the money. It's for a car or college (this money periodically makes it into their savings accts).
The yellow envelope (we call it 'special savings') is for saving and then spending, like buying others gifts for Christmas, or saving for a long term item, like an I-touch or something.
The green envelope (called 'spending') is for immediate spending if they choose. Like toys, candy, souveniors on vacation, donating to a cause of their choice (I don't make this mandatory with their cash - the charity thing. We do volunteer work periodically, so I don't believe in them *having* to donate money).
I got the envelope idea from another parent a long time ago - it's worked very well for us.
And I just kind of do what feels right at the time. If they get a check for a bday, I do usually deposit the whole thing in their savings account (it's just easier). If they get handed cash, I usually let them keep the whole thing for spending (I figure they could have gotten a toy from the person instead of cash, so if they want, they can go buy a toy).
Allowance and other earnings have always been split among the 3 envelopes. Huge amounts of money (like at communion) were also split (I'm not going to let them put $400 cash into their spending).
My dd11 will not really spend her money, even her spending money. I think she has a few hundred dollars in her 'spending' envelope. She'll also choose to put a bit more in long term savings when she divides her money into the 3 envelopes.
My ds9, on the other hand, used to give his money away. He once took his spending envelope (it had $70 in it), and gave it to his sister and insisted she take it and keep it. I don't know why (I think he just didn't really 'get' money yet). We were going on vacation soon, and she brought it with her and bought them both fun things with it. So it worked out ok. Now I don't think he'd do that (being 9yo).
When they got older (maybe about 5yo - they're 9 and 11 now), we set up 3 envelopes for them... think of a stoplight - red, yellow and green.
The red envelope is for long-term savings - they cannot touch the money. It's for a car or college (this money periodically makes it into their savings accts).
The yellow envelope (we call it 'special savings') is for saving and then spending, like buying others gifts for Christmas, or saving for a long term item, like an I-touch or something.
The green envelope (called 'spending') is for immediate spending if they choose. Like toys, candy, souveniors on vacation, donating to a cause of their choice (I don't make this mandatory with their cash - the charity thing. We do volunteer work periodically, so I don't believe in them *having* to donate money).
I got the envelope idea from another parent a long time ago - it's worked very well for us.
And I just kind of do what feels right at the time. If they get a check for a bday, I do usually deposit the whole thing in their savings account (it's just easier). If they get handed cash, I usually let them keep the whole thing for spending (I figure they could have gotten a toy from the person instead of cash, so if they want, they can go buy a toy).
Allowance and other earnings have always been split among the 3 envelopes. Huge amounts of money (like at communion) were also split (I'm not going to let them put $400 cash into their spending).
My dd11 will not really spend her money, even her spending money. I think she has a few hundred dollars in her 'spending' envelope. She'll also choose to put a bit more in long term savings when she divides her money into the 3 envelopes.
My ds9, on the other hand, used to give his money away. He once took his spending envelope (it had $70 in it), and gave it to his sister and insisted she take it and keep it. I don't know why (I think he just didn't really 'get' money yet). We were going on vacation soon, and she brought it with her and bought them both fun things with it. So it worked out ok. Now I don't think he'd do that (being 9yo).
