Parenting Tips

Teaching kids about money with an allowance.

Allowance for kids, teaching kids about money.

I can’t believe I am already in the throes of figuring out an allowance for kids and teaching kids about money. I went to the bank yesterday. My 4 and 6-year-old shouted from the backseat “How much money did they make us, mom?” It’s been impossible to explain that the money I picked up from the bank is actually money we worked hard for.

Explaining the value of the dollar to a four-year old… it’s complicated. 

Allowance for kids, teaching kids about money.

I proceeded to my next errand the FedEx office to pick up a package. Both boys chucked candy on the counter. “Put it back, you don’t need that”, I muttered under my breath. “But, you have money mom”. Basically I can’t take my kids anywhere, because eye level at a checkout is the reason I am always broke. 

Brody spent a good chunk of kinder learning all about money, but still has a hard time processing that the .78¢ he found in the couch wont get him anything at GameStop or the FedEx office.  Enter my plan to get my kids doing more chores and earning an allowance. My boys have no interest in chores. In reality if anyone helped me keep this house in order I’d basically give them candy at the checkout without batting an eye. 

We have tried teaching kids about money with our oldest. It worked best when we paired allowances with chores. So I am kicking summer off with an opportunity to get my kids helping me and helping themselves. Enter the all mighty dollar.

There are rules to earning an allowance. You earn a buck in this house, you have to distribute it wisely.

Allowance for kids

Donate (20%)

The donation jar has endless possibilities. In teaching my boys to give back, I want them to have the opportunity to do something for someone else. Our elementary school does a week-long change drive and my son loved to take change from his piggy bank every day.We also enjoy purchasing gifts from the Angel Tree during the holidays.  I plan to let my kids have more control of picking their own recipient and purchasing the gifts. 

Save (30%)

The save jars purpose is to save for something big they have their eye on. My middle son wants a DS and my youngest wants a scooter. My oldest is saving for spending money on our family vacation.  

Spend (50%)

Basically half their allowance is theirs for whatever they want. Like when I drag my boys to Target they have their own stash of cash that mama doesn’t have to negotiate with them on. 

save money Allowance for kids, teaching kids about money.

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