Sunday, January 27, 2008

Allowances - Habits with money

Making Children Mind Without Loosing Yours by Kevin Leman suggests giving the children weekly allowance to match their age. A 10 year old gets $10. A 5 year old gets $5. This is a good model since the older children usually get more responsibility and are capable of doing more. A workplace comparison would be that a person with more seniority gets a higher pay for the same reasons.
This works well for our family. Receiving an allowance comes with responsibilities. I teach my children that the Bible tells us to tithe 10% and that it's between them and God. They don't have to report to me when they tithe or the amount they tithe.
They also have to put 20% into savings. This savings is for their first car or their first apartment or books for college. It is for the future. Just as adults, we should be saving for retirement.
The rest of the money is for them to do with as they like. If they want McDonald's, they have to use their money. If they go to the skating rink and want to play video games, they must use their own money.
A couple of years ago, my younger daughter wanted a "Nursery Bear" from Boyd's Bear Country. The thing cost $50 and of course they had additional accessories that you could buy for another $25. I told her that I would not spend $50 on a teddy bear, I don't care if it is a "Boyd's". She had to save her allowance and had to keep in mind that there would be 6% sales tax. To my surprise, she did it. She was able to save it in a couple of months. On the day she got her bear, we made a big deal of it by taking pictures and making a little album of the event. 3 years later, she still treasures that bear. So there is value in the child saving for something they really want like a bear or a car, etc.
It is our responsibility to teach our children good habits in all aspects of life.

Here are pictures from our Boyd's Bear Experience:

Hmmmmm....So many! Which one do I choose?

Filling out adoption papers.

Using the money she saved to pay the "adoption fee".

Proud new mommy!

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