allowance for kids

[nicholas421]

my step kids, 10 and 13, get $10/wk for allowance.
needless to say, it's all gone by the end of the first day. i don't think they are learning the value of a dollar. what do you guys give your kids? how do you teach them to respect money?

 

[Brian2by2]

my step kids, 10 and 13, get $10/wk for allowance.
needless to say, it's all gone by the end of the first day. i don't think they are learning the value of a dollar. what do you guys give your kids? how do you teach them to respect money?

I never got a dime for allowance without having to do a big checklist of chores. I also rarely got gifts just 'because'. My parents were roughing it when I was a kid. My two youngest brothers (3 and 5) are spoiled rotten as far as what they get because my dad has no made himself a small fortune. Thankfully, it hasn't gotten to their head YET and I'm hoping it doesn't.

I had a checklist of chores that I had to do as a kid: clean room/bathroom, feed the dog, pick up all my stuff around the house, wash dishes on odd days and dry on even (my sis and I alternated), take out garbage. Basically we were a two-sibling sweat shop lol. And at the end of hte week, we got $5 each and finally, $15 each when were in middle school.

At the age of 14, I started working for my dad at $6.00 an hour and have never asked him for a penny since then (other than money he took from my paycheck to put aside for emergencies).

Just giving your children money may not be the best idea...I learned the value of the dollar and I thank God for it. Unfortunately, my sister hasn't. She's 19 and can't hold a job for more than 2 weeks, can't pay her car payment/insurane/phone bill and is struggling. She was given everything until she graduated high school.

 

[hlweyl]

My boys, 11 and 13 get $5/week. They have to do something every night. They go off of a schedule and we check them off after they have done it. Walk the dog, put away dishes, clean their rooms etc.

We have a separate list of things they can do if they want to earn extra. My oldest son has earned over $20 in a week, they work hard when they have goals. They have both saved up and bought things on their own. Big items, I have matched their money (guitars, high end skateboards, etc)

 

[Casper91]

What do they have to do for $10.00/wk?
Maybe they are overpaid.

If this is not the case and they blow all the money the first day,
that's their choice. It will be up to you not to give them anymore to buy that special something they have to have. They'll need to wait till next week.


I have 6 yr old twins, so there allowance is much less.
It's based on the job, not by the week.
But then again what's the attention span of a 6 yr old?

 

[LeftLane]

My kids get their age each week ($8 and $5), but only if they do their daily chores without having to be reminded and without complaint. They have actually turned into pretty good little savers. We also impose "fines" for various things to make sure they know what a dollar is worth. For instance, if they walk past all their stuff on the stairs without taking it up to their rooms, they are fined $1. It's amazing how much attention they pay to doing their stuff when they know it will cost them if they slack off.

We also encourage them to save at least 1/2 of any gifts they get for birthdays, etc, so they can learn about the benefits of delayed gratification. We turn them loose with the other half to waste on whatever junk they want to buy, with no complaining allowed if they end up unhappy with their decisions. This works wonders with my kids - they make absolutely sure they use their money for something they really want, and they actually pay attention to their bank statements when they come in the mail to make sure the bank isn't ripping them off.

 

[ss_md]

my step kids, 10 and 13, get $10/wk for allowance.
needless to say, it's all gone by the end of the first day. i don't think they are learning the value of a dollar.

Allowance is free money. They'll never value somthing they don't work to get.

what do you guys give your kids?

Never gave my kids allowance. They all did chores around the house and yard to earn money for spending.

how do you teach them to respect money?

Don't give them allowance! Make them work for their money and don't give in if they fail to finish a job. Start off with small chores and assign them more as the get older. When they run out of money don't give them any unless they want to do more chores to earn more.

Here is a suggestion that was given to me by Tax Consultant: If you own your own business put them to workand pay them just as you would a regular employee. The rate you pay and the jobs you assign them must be the capacity for their ages. When you pay them put the money directly into a savings account. When they need money for anything you take it out of the account. This is a job for them and a way for you to possibly get a tax deduction for a family employee.

If you don't own your own business you can still apply the savings account principle to their chores and pay. Be fair and pay them accordingly. Don't be cheap - they are not slaves!

Disclaimer: Consult your tax adviser or attorney for professional advice.

 

[hlweyl]

Very good advice. I think the worst thing for your children is to do everything for them. Then they grow up not knowing how to do anything and wanting everything done for them.

It is very important for children to be able to accomplish tasks/goals and to have a sense of pride.

 

[len3.8]

I have a 11 year old daughter. She gets an allowance from her mother, I don't agree with it. I ask her to fill my ice trays or other small tasks and she always seems to forget.. Therefore when she asks for any $$$'s from me, I forget where my wallet is... I get as much mileage out of any $$$'s we give to her. We encourage her to save it, which she usually does.. We usually just make sure we give her a little extra lunch money, other than that she has everything else she needs... I and my wife are the only ones in the house that are allowed to get something we want...

 

[MsKadyB]

I never got an allowance because my parents didn't believe in it. I know some kids who used to get a regular allowance and now one of them is a college drop-out who is still being supported by his parents because he can't hold down a job.

I realize that is just one case, but if you are going to give your children allowances, make them work for it so that they understand the value of a dollar.

 

[steveny]

I never got an allowance because my parents didn't believe in it. I know some kids who used to get a regular allowance and now one of them is a college drop-out who is still being supported by his parents because he can't hold down a job.

I realize that is just one case, but if you are going to give your children allowances, make them work for it so that they understand the value of a dollar.

Yep! Almost every kid I grew up with is now broke if they had wealthily parents as a child. I am a firm believer in money skipping a generation.
If I ever have kids, against my better judgment I will probably spoil them because of growing up poor. When I say poor I mean VERY poor. I grew up with no electricity, heat, refrigerator, hot water, family car, etc. We all slept in the kitchen on army surplus cots, next to the wood stove for heat. I use to lay on the cot at night and figure out ways to become rich. I look back now and realize those were the happiest days of my life. With more money comes more problems that is for sure.
As far as an allowance goes I never received one. I was instead mowing lawns shoveling out horse/cow barns, repairing vehicles to make money so we all could eat. Until a dollar comes between an empty stomach and a full one it is hard for anyone to understand it's value.

 

[coolnsx]

My two now college age daughters were paid by assignment at our real estate company. All jobs had specific goals at specific payments. They both went on to Post Graduate degrees, maybe we overpaid!!!

 

[Ryanmcd2]

I think you are right, 1st gen makes it 2nd loses it. I was flat broke as well, not as bad as you but I did have to walk 2 miles to work each day to get my 1st VW for 2k after working for 4.25 a hour lol, and I will do the same to my kids no matter how much money I had, we grew up in a suck ass house and I remember being so broke we tied strings to the wipers on my dad's car and ran the strings through both windows and when it rained out we each took turns pulling them so we could see . I look back to see who was given everything and they suck in life, not all but about 85%, I think if you have to work for something you take better care of it and do better at it.

Yep! Almost every kid I grew up with is now broke if they had wealthily parents as a child. I am a firm believer in money skipping a generation.
If I ever have kids, against my better judgment I will probably spoil them because of growing up poor. When I say poor I mean VERY poor. I grew up with no electricity, heat, refrigerator, hot water, family car, etc. We all slept in the kitchen on army surplus cots, next to the wood stove for heat. I use to lay on the cot at night and figure out ways to become rich. I look back now and realize those were the happiest days of my life. With more money comes more problems that is for sure.
As far as an allowance goes I never received one. I was instead mowing lawns shoveling out horse/cow barns, repairing vehicles to make money so we all could eat. Until a dollar comes between an empty stomach and a full one it is hard for anyone to understand it's value.

 

[ChopsJazz]

Two stepsons: Mom and I give them $0.00 per week. They are expected to do certain chores around the house.

 

[nkb]

I think it's silly to generalize like this, and base how someone turns out later in life on whether they received an allowance. There are far too many factors involved, and allowance is a symptom more than a cause.

IMO, the single most important thing is what values your parents pass on to you, not whether they give you free money. Believe it or not, you can learn responsibility and get an allowance, and still turn out fine.

I also laugh when I hear people throwing out statistics (like 85% of rich kids "suck in life"). I'm sure you reached that conclusion through some serious scientific research.

The premise that spoiled kids that got stuff for free become failures, and poor people who had to work hard to get where they are become successful, is ridiculous.

I'm going to go out on a limb and say that roughly the same percentage of poor and rich people turn out to be respectable people, regardless of their background.

 

[LeftLane]

I think it's silly to generalize like this, and base how someone turns out later in life on whether they received an allowance. There are far too many factors involved, and allowance is a symptom more than a cause.

IMO, the single most important thing is what values your parents pass on to you, not whether they give you free money. Believe it or not, you can learn responsibility and get an allowance, and still turn out fine.

I also laugh when I hear people throwing out statistics (like 85% of rich kids "suck in life"). I'm sure you reached that conclusion through some serious scientific research.

The premise that spoiled kids that got stuff for free become failures, and poor people who had to work hard to get where they are become successful, is ridiculous.

I'm going to go out on a limb and say that roughly the same percentage of poor and rich people turn out to be respectable people, regardless of their background.

Thanks, nkb. Based on the posts here, I was starting to feel like an idiot for giving my kids an allowance. Since we don't make the amount of money the issue, rather the accomplishment of chores, I see absolutely no problem with allowances. Plus, I get a lot of joy seeing my kids save their own money and debate about whether they really want something bad enough to spend their own money.

Depriving your kids of everything is no way to guarantee they turn out having more character and strength - maybe they'll just resent the hell out of you for being like that. There is a big difference between being generous and spoiling your kids. Remember, charity begins at home.

 

[dawggpie]

IMO kids' respect for money is more based on watching how their parents deal with money rather than the amount of allowance they get. This is a tough situation because if you've done well for yourself financially you want to be able to enjoy yourself a bit. Problem is, the kids might see you enjoying the money, but they might not realize all the work and hardship that went into getting you into that stable position.

I was lucky in that i came from a decently well off family and got an allowance, but I never saw my dad throwing money around in a wasteful fashion. I had a list of chores to do and had to buy most things myself aside from bday and xmas present. I'm 24 now and put a decent % away in my 401K, invest in the stock market and would like get into real estate. I really enjoy investing and (hopefully) watching my wealth grow. I'm sure this has everything to do with the way my parents raised me.

You might want to try offering your kids an interest savings scheme to entice them to save more. For example, give them an extra 5% on the money they save month to month. I don't understand how your kids can blow their savings on the first day if they'll have nothing for the rest of the week. Are u giving them more money when they complain about being broke? I'd say you have 2 options. Either give them smaller amounts of money, but more frequently, this way they are forced to save for a while before being able to buy anything substantial or take the reverse approach... Give them a lumpsum once a month. If they blow the cash right away they'll have to live with being broke for the rest of the month. Rule with an iron fist. No extra money unless they do extra chores. Goodluck

 

[paladin]

I'd have to disagree with the lump sum idea. At least for me it feels like i ended up a lot happier from budgeting my spending (less on comic books) and then after a few months being able to buy a new bike (my parents went in halves).
I like the saving with interest idea, that sounds interesting