And so they didn't get an allowance because it was just easier that way.
I was thinking about it again the other night when I finally realized what my big hang-up was: the cash. I very rarely have cash on hand. (Except for an emergency $20 I keep in my wallet.) I realized that the reason we hadn't done anything yet was because I didn't want to have to deal with giving them cash every week.
And then I had another realization: these children didn't HAVE to have cash. In all reality, these children could grow up using cash only on very rare occassions. I mean, everything is electronic now. I know some people argue that children can't really understand the concept of wise spending without actually having the money in hand - but I don't agree with that. This is the e-generation; if anything, using cash could be a more foreign concept to them than having an electronic account. Doesn't it make more sense to set up their allowance for this type of lifestyle?
So that's what I did.
We had a short Family Home Evening to introduce this. I made a PowerPoint presentation for it because:
- I'm a geek at heart.
- In my previous life (before children) I was known as the PowerPoint Queen. Bow to me, subjects!
- I knew anything on the computer would keep their attention.
We also showed a very simple chart of how and where our family spends their money. For simplicity I just used $1000 per month as our budget, so if you hear Spencer or Josh bragging about how we make $1000 a month, don't worry. We're doing a little better than that! I was glad that Spencer was impressed at how much we spent on our mortgage and food; perhaps he'll appreciate the roof over his head and the food on his plate a little more now. Or not; I'm no dummy.
I explained to them that they now each have their own accounts, and each week they will get $2 deposited into the account for their allowance. (Hey, we're big spenders here! But how much does an 8 and 5 year old really need?) I didn't really set up new bank accounts for them - they already have those online, and they're strictly for college/missions right now. But I set up an Excel spreadsheet for each of them to keep tabs on their earning and spending.
It's certainly nothing fancy, but it'll get the job done.
We let them know that when they wanted to buy something they should let us know. Then we would either use our credit card (like online or at the store), or we would get cash for them to use. I made sure they understood that this money would be deducted from their account. Then I made sure that they understood what "deducted" means. :)
I'm pretty sure they have a good grasp on the concepts we talked about. I'm hoping this will help them learn some fiscal responsibility, which, given the state of the economy and some of the reasons for it, many parents didn't teach their children a couple of decades ago!
How about you? Do you give your children allowances? How do you do it and how much do you give? Do you tie it to work around the house? (We're not doing that - if you're a part of this family then you work, whether or not you're paid!) I'm interested to see how different families do this. Susie - have you ever taught classes or units on teaching children about money? I'm interested to hear what a professional thinks. :)
7 comments:
I suppose electronically is the way to go, but how sad that the boys will never know the joy of dumping their money out of 'whatever' they would use as a piggy bank, and counting the money. Then figuring out how much more they need to save to buy that special toy or item. Figuring how many more weeks they need to save to reach that goal. And then there is the fun of sorting and stacking the coins and bills. Such great fun and working on math skills at the same time!
Somehow electronically just doesn't seem like it would be as much fun....and all the math is done for you.
Can you tell I am from a different generation? LOL
Oh and our kids also didn't work for their allowance....but! When they were saving for something special, or just wanted a little more...the favorite job to do around here, was pull dandelions!! They received a penny per flower head and a nickel for each plant with roots, they got out of the ground! In no time, our yard was dandelion free!
Finally, I need to tell you that my name is Karen, I live in Michigan, have three grown kids and learned of your blog through Mindi and Adam. I've been following you since before Cole was born! You write a good blog Maren!
Electronic will probably work well for you guys - Jase would freak out if he couldn't feel, count, and play with his money though!
Our kids do some work around the house that is just expected of them (in return for the priveledges of being in our family - house, food, tv, computer, wii, etc). But then there are certain things they can do to earn money.
This is good. I think that it's very important to teach kids this and especially teach them about the budge that YOU are on! I love it when Sam asks me for stuff and I give him the lecture, "Well, I have to spend this much on the mortgage, this much on food, and I need to buy you more jeans because you just ripped out two more pairs, and I have the insurance, and car payment, and electricity, and garbage man, and, and and...." Then he gets it, then stops asking!!! hee hee.
We give the kids allowance that matches their age. We give it in cash. We just get cash back when we use our debit card. We give it to them once a month. I just read this great book called, "The Parenting Breakthrough" it's by an LDS author and is basically about teaching children how to be reponsible and independant so that when they leave home, they won't freak out and come back. It's a good read and has lots of good ideas concerning money...especially for when they get to be teenagers.
I think what I like most about this is that you're teaching basic accounting principles with debits and credits.
OK, I LOVE allowance. Because I can use it to my advantage! Right now, I am charging Brooklyn a quarter for every garment of clothing I find on the bathroom floor, and 2 quarters if it's underwear. I charge for leaving bedroom lights on, or whatever problem needs tackling at the moment. If they steal food, they pay for it out of allowance. It's the best!!
I also allow them to earn raises with good behavior, keeping rooms clean, good grades, etc.
I really struggle with the cash on hand thing, too. I hadn't thought about doing it electronically. That might actually work better, and help them save. I love watching them save for big wanted items, and they love having spending money for spontaneous trips to the gas station. You'll have to let me know how it goes.
And congratulations on earning $1000 month! You've hit the big times! :D
Our kids get $1-2 a week as well. I'm glad to hear you are about the same -now I don't feel like we are so cheap. We use cash, and it is at times challenging that way. But we keep a little tin with pocket change -and it tends to cycle back around through the system since they pay us before we check out. Anyway, they get paid on the first Saturday of each month, which is so much easier than weekly (how we used to do it) and helps them save better. We give them enough change to help them figure their tithing out, and then we have them pull out their money books. Someone in Provo did a RS class on teaching our kids finances from a young age, so I used her idea of keeping a Notebook for each kid and teaching them to keep record of how much they are getting and how much they are tithing, saving, and spending. They have a pocket in one end for savings and in the other end for tithing which they turn in monthly, too. The books have been a great idea for years for our kids, however I admit we are not always super good at record keeping. Work in progress. BUT, our local bank recently did a thing where our kids could grab a handful of change and the bank would deposit whatever they could grab into their own accounts (Wells Fargo did it). So, now after they get paid, instead of using the pockets in their books for Savings, they give us how much cash they want to deposit back (it goes back in the tin), and we enter it in on the computer. It is really exciting for them to watch their accounts grow, and it really helps them not to dip into that.
Anyway...however you go about it, it is just good to start and get them thinking about it. You are doing great!
Also... I really like your online record keeping idea -a bit nicer than the notebooks. May just copy that!
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