Learning to Manage Money

Allowance Pay Rates For Kids

Allowance for Kids

My son started receiving an allowance when he was 6 years old. We decided to give him a weekly Allowance Pay Rate of $1 for every year of age that he has existed!

So as a 10-year-old, he’s getting $10. My daughter got the added benefit of receiving an allowance when she was 5 years old. You might think that it was our idea, but you’d be wrong! It was my son’s idea! He noticed that he was getting money, but his sister wasn’t, so he asked us if she could get her allowance early instead of when she was 6 years old. She also get an Allowance Pay Rate of $1 per year of age. He really is a considerate big brother!

Allowance during the 1st year for both kids!

Surprisingly, both kids had similar allowance experiences for the first few years! They both didn’t really get it at first, but we still made the trip to Chase Bank and watch as we deposited the money in their Chase accounts. They got use to the process as I explained how I filled out the deposit slip each and every time we went. With kids, repetition is the key! So I was hoping to teach them that money should be deposited (saved) in a bank and not touched! My son has grasped it since he is older. Unfortunately, I haven’t taken my daughter as much to the bank, but perhaps I will more in the future!

Money Management for My Son

Initially I split the money so that my son had a portion for spending, saving and charity. The split was 40%, 40% and 20%. But since he turned 10, I let him have full management of the money by himself! I’m proud to say that he has saved $500 so far and is trying to save $700 by the end of the year.

Money Management for My Daughter

With my daughter, I’m still splitting the money like I did for my son. When she is 9 or 10, I’ll hand over the reigns of her money management assignment to her so she can manage her money for herself too.

Hope you enjoyed this post,

Rich

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