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!