Image by Kimli via Flickr
I've always thought that teaching your children the value of money, the management of money and spending is an important life skill.
Money needs to be earned. It's not given away nor won, well, at least not in my case.
I want my boys to value the amount of work and sacrifice needed in order to earn some.
To be able to determine what is necessary versus what is wanted. To become adults who are aware of saving, preparing for the future, giving back and even spending.
So, my son at the age of 5 is getting his weekly allowance.
Two dollars a week.
This might be a little too much. In her article, Should my kid get an allowance?, Lezlie Lowe, stated it should be around 75 cents. Well, at least it has helped him with his mathematics - boy can he count by 2s fast.
In Preparation:
Open a savings account in your child's name, if you don't already have one. Visit or go online to your preferred branch and review all the types of accounts offered to children or check out page 106 of the October issue of Canadian Living, Small Savings.
My son receives his monthly statements in the mail and looks forward to seeing his name. Makes him feel so very important. That's because he hasn't received any bills in the mail yet.
He walks so proudly to deposit his wrapped coins to the teller at the bank. Yes, he does go up to the counter and communicates his needs by himself. Kind of cute to watch. The teller always giggles.
Maintainance
Guide them with advice, support and by example.
Kids are so very impressionable and quite smart - don't let them fool ya.
As he gets older, I'm sure our planning goal will change to include higher education, A MUST, but, right now we check the calendar for any special events and plan for it.
He buys birthday gifts for his brother, well, at the dollar store.
A special trip to Chuck E. Cheese\'s.
Christmas is coming up soon, so we need to pick a toy for the CHUM Christmas Wish.
Lessons he'll learn. Once you spend it it's gone. He might make a mistake, and realize that it wasn't worth all that time saving. But, that's how we all learn our lessons well, by mistakes.
Results
The hard part is the message.
Doing his best in school, not fighting with his little brother, and some help around the house is part of being a family and does not effect his allowance. So, even if it has been a "challenging" week at school, the allowance doesn't change. I don't give him more for better behaviour or less for "not so good" behaviour.
My goal is for him to manage, appreciate, and value. I don't want money to be preceived as his reward, but a tool for life.
Does your child receive an allowance? Has it been positive?
