Allowance

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23 Responses

  1. This is fantastic. I love it 🙂

    Our toddler is too young right now, but I have similar ideas that I want to use to encourage saving and investing. Another idea I have is a savings match. The idea is to encourage savings by increasing contributions — similar to how some pension plans and retirement plans work. So, if your son saves $5 by the end of the month, he can have an extra $5 added to the savings.

    Great post. Keep em coming

  2. Totally agree! In fact I would ask them to invest a portion of the allowance as a part of an index fund (with family match and dividend reinvestment). I wish I knew all this when I was a child 🙂
    dividendgeek recently posted…10-Year Dividend Growers with dividend increase (Dec 04 – Dec 08)My Profile

  3. Leo T. Ly says:

    It’s great that you are starting to teach your kid at a young age and he really understands it. My kid is just a bit younger than yours and he’s no where close to being able to understand the value of the different coins.

    I am starting to teach him though. Right now he has a piggy bank and starting to ask me to buy him books. Gotta ask him to pay for it soon lol.
    Leo T. Ly recently posted…The Best Holiday Gifts To Give YourselfMy Profile

    • Hahha Leo. Its true asking for them to pay for it stops all the book buying pressure. Once you start talking about the money or asking them what change makes a dollar they learn pretty fast. Sometimes the new designs in the coins throws him off, we aRe working on the sizes of the coins. Haha
      Cheers Leo!

  4. Enoch says:

    Interesting idea! We are definitely going to look for ways and means by which our kids can learn about the value of money, savings and investing. They will have to earn whatever “pennies” they get though – no free lunches in London. lol
    Enoch recently posted…Understanding Annuities in Retirement PlanningMy Profile

    • Hahha hey Enoch. I thought you were canadian? Or canadian living in london england? Great that you want to teach your kids the financial world. Got to start somewhere! Sadly there is no free lunches here either,I always got to pay.
      Cheers

  5. steve says:

    100% agree, My kids are older now but we always encouraged them in similar ways as you. kids watch your every move so being a good role model helps as well. Great article thanks.

  6. May says:

    Very similar in my house. My kids get allowance every week and they are free to do whatever they want. They don’t need to do anything, the allowance is unconditional. They save majority of the money in Daddy bank as they will get interest every month for that. If they want to buy something I don’t think worthy, they have to decide if they want to buy it with their money. Half of the time they decided not to buy it. If they donate the money for some good cause, we match the amount.

    • Hey May, great to hear. I love how you matxh their donations maybe thats something me and the wife should implement. What do you mean the kids keep the money in daddy bank? Your husbands real savings account and get like 1% interest? Or do you guys do something else?

      Cheers
      Rob

      • May says:

        Daddy bank is just a way to teach the kids money management. They can choose to have money with them, or save the money with Daddy. Once they have $100 saved, Daddy will pay $1 every month as interest. We taught them to think the saved money as their hen laying eggs for them.

  7. My brother and I didn’t get an allowance growing up, and if I have kids I don’t think I’d give them an allowance either.

    My dad put it plainly “I don’t charge you guys rent”. Sounds cold, but it’s true. Doing chores and helping out around the house should be a responsibility. As a family, we all need to care for and help eachother out.
    Troy @ Bull Markets recently posted…Why you should invest in stock index ETF’s and not individual stocksMy Profile

    • Hey Troy, its definitely true. I understand the feeling why give him a buck or two if he’s living here rent free. Now when I say that I mean at the age 13 plus. I definitely wont expend rent from a 4 year old. The way I look at it is at 2 bucks a week or 104 bucks a year, that’s worth the education he is learning about money. I pointed out he basically gets allowance no matter what. Chores are just a way to pitch in around the house. There’s is always a ying and a yang right?

  8. Pellrider says:

    It is a good story about the gloves. Kids used to lost lots of gloves in school. I used to stock up dollar store gloves when my kid was in grade school. I will tell this one to every parent who is frustrated with the lost gloves issues.

  9. BusyMom says:

    I agree to every single word.
    We started off by paying for every chore. Ended up in my son not doing anything and not getting paid. We then switched to allowance, but he has no option of not doing his chores. Seems to be working out pretty well. He has now saved up over $1000 – I wrote about it here, if you are interested. http://www.countdowntotranquility.com/2017/12/day-28-how-this-9-year-old-saved-up-more-than-most-americans/

    • Rob says:

      Hey mom.

      Thats great to hear. Nice work parenting! My son is a saver as well. Its nice to see I was nothing like that.

      Will definitely be checking your post out.
      Cheers
      Rob

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