Polliesdividend

Teaching my kids – Part 7: Allowance and learning money

I will be writing some posts to try to educate my kids. I know they are still very young (5 and 7) but it is never too early to start. And they can read these blog posts later on in life 😉 (This is probably the case, because they don’t speak or read English very well at this moment – You got to love an understatement!).

This is another blog post to keep the “snowball of knowledge” rolling.

I think when you educate kids about money, they will benefit from it for the rest of their lives. Or as the saying goes: “What is learned in the cradle is carried to the tomb”. And to educate your kid is your responsibility as a parent.

I know, it is a hard task, and most of the time very rewarding! But what do you learn them about money? How do you let your kids get acquainted with money? Are you letting them make mistakes? Etc. Lots of questions and no straight answers. This because a lot of answers are possible. And do you do the right things? That question cannot be answered. You have to wait when they grow up and see how they are doing.

I try my best, and yes I make mistakes. But everything I do, I do with love and devotion (with the best interest for my kids in mind).

In this post I try to tell you what my principles and rules are about allowance.

  1. They get allowance every week
  2. The height of the allowance depends on their age
  3. They get their allowance in cash, so they can feel and look at the money. And by doing this they get acquainted with is
  4. They get their allowance every week at the same time
  5. We made rules about spending their allowance
  6. They have to save at least 50% of their allowance
  7. A couple of times a year we take their piggybanks to the bank to deposit their savings.
  8. The other 50% they can use as they choose to. But when they have spent it, they have to wait till next week to get some more. (So absolute no lending money! Or paying in advance)
  9. Their allowance is not used as reward or punishment.
  10. When my kids have regrets about what they did with their money, it is no big deal. That is the way they learn. You can say; they paid learning money
  11. Saving is fun. And it is important to set goals. So we help them to make them.

This is my seventh blog post about teaching my kids. I hope my kids at the age of say 18, have all the financial knowledge I’m having right now. This would be a huge advantage for them! And that’s why I started these blog post series.

Did have principles or rules about allowance. Or did you have them when you were young? I like to hear from you.

And will you help me to get the “snowball of knowledge” rolling?

Cheers,

Pollie

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5 thoughts on “Teaching my kids – Part 7: Allowance and learning money

  1. Stalflare

    Ciao Pollie,
    So you do not use the money as a form of reward/punishment? What if they do something REALLY WRONG (in general, not with money), wouldn’t be the allowance something that you could use to teach them something? As you know I do not have kids so probably it’s the worst thing to do, but I am curious to know why you decided to leave it out of a possible punitive measure…

    Ciao ciao

    Stal

    1. Polliesdividend Post author

      If they do something really wrong, I think it is not good to punish them by withholding their allowance. The feel must be good. And If you us it for punishment it will got a different feel to it.

      They can do choirs and earn extra money. So there is the lonk between work and money.

      Cheers,

      Pollie

  2. ambertreeleaves

    One thing we are considering is to have a minimum list of household work to do to qualify for allowance… This way, they know you need to work to get something as well.

    I do trust that our kids will want to get the allowance. We would also allow them to spend half on what they want. I see candy as the prime go-to for their cash…

    This September, the oldest goes to the first grade. that looks to be a good timing to start. the youngest will be more than frustrated… not sure how we will deal with that

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