Children and allowance

In the drive to work this morning, I was listening to a Money Blogger Podcast with JLP from AllThingsFinancial and was pretty interested in what he had to say about children and allowances. Basically, the gist is $1 for every year of age per week with a cap of $10. At first, I was thinking that was a rather high amount until I heard the conditions:

  • 25% into Long Term Savings
  • 25% into Short Term Savings
  • 10% Tithing to Church

That roughly means that out of $10, the child is left with $4/week or roughly $16/month. This is a figure that I can live with! He also recommended letting the children hold onto their money so they get a sense of what it feels like to spend it. I really like this idea and will definitely incorporate into my own outlook. Great podcast with great topics!

About wujimon

taiji, meditation and health
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One Response to Children and allowance

  1. Our children must EARN their allowance, no freebies!! As a single parent that was *less* than good with money throughout my youth, teaching children about money is CRUCIAL, in my mind. I’m not going to blame parents, schools, etc, but quite simply, I clearly “didn’t get it”, and I am still paying for those mistakes a decade later! And quite frankly, I hate the position I got myself in, everytime I pay off my past debts… I could have used my time/money sooooo much better.

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