RunningAHEAD - Topic: Allowance

Mississippi

posted: 11/14/2007 at 8:04 AM
modified: 11/14/2007 at 8:05 AM

My children are trying to convince me that they should get an allowance. I was just looking for some opinions from others about children getting allowance. I'm not too sure that it should be an automatic thing. Growing up I didn't get an allowance. I had lots of chores to do and I did them without ever once expecting to get paid. My kids tend to expect to get paid for chores and I don't agree. What doesn't help is how some of the kids' friends get a big allowance. One child gets $20 a week! At that rate I'd be out $80 a week.

Michelle

Bonkin

posted: 11/14/2007 at 8:22 AM

It's a tough subject. I think kids need some money so that they can learn the basics of money management, budgeting, saving, etc. I'm with you in that I don't want my kids to learn that they should get paid for everything they do or get paid for nothing. My kids go to a school with some children of pretty well off parents - some of these kids walk around with a hundred bucks in their pocket - at 10 years old. Shocked

So what we've come up with that works for us so far is this. The kids (8 and 10) get $5 per week allowance. To get this they must get decent grades that week, no trouble, etc and clean their room. The room must also pass the "Mom Inspection". They have a list of other chores that they must do throughout the week for free. We also have a small list of chores they can do to earn extra cash if they are so inclined.

When it’s all said and done, will you have said more than you’ve done?

zoom-zoom

rectumdamnnearkilledem

posted: 11/14/2007 at 8:32 AM

Quote from Bonkin on 11/14/2007 at 8:22 AM:

So what we've come up with that works for us so far is this. The kids (8 and 10) get $5 per week allowance. To get this they must get decent grades that week, no trouble, etc and clean their room. The room must also pass the "Mom Inspection". They have a list of other chores that they must do throughout the week for free. We also have a small list of chores they can do to earn extra cash if they are so inclined.

That sounds like something that would work really well. At what age did you start this with the kids, Mike? One thing I will never do is give $ for grades. I had classmates who got dollar amounts for good grades...at the time I was jealous (heh, and used it to excuse my crappy grades), but my parents refused to pay us to do well in school. Their reasoning was that doing well in school should be a matter of good grades for the sake of good grades--not because of some arbitrary monetary reward. I agree. k

Getting the wind knocked out of you is the only way to

remind your lungs how much they like the taste of air.

~ Sarah Kay

mikeymike

posted: 11/14/2007 at 8:55 AM

My kids get nothin and like it!

Runners run

Davdaws

Swadvad

posted: 11/14/2007 at 9:05 AM

We do sort of like Mike's family, but with an added twist. I get paid every two weeks, so each kid (we have two) gets $20 every two weeks. They have to put 10% in savings and give 10% offering to the Church. Out of the remaining 80%, they can spend on themselves, BUT, if they get invited to a friend's birthday party (they get invited to a lot of birthday parties!) they have to purchase the present out of their allowance. We don't let them get a cheap $2 or $3 gift. It has to be at least $10. Hopefully this is teaching them some money management. My son is always very low in his funds, but my daughter recently put almost $200 in her savings account. They have certain daily chores that are expected and not paid for. There are some extra chores available that they can do to earn extra money. My son is quite often washing my wife's van so he can go to the next birthday party.

clhagan

posted: 11/14/2007 at 9:29 AM

I did a lot of research on this last year when we were considering giving my stepson an allowance. I read a lot of varying opinions on it, but one that stuck with me was that a child should do chores because it is expected as a family member, not as a way to earn money. After all, I don't cook dinner every night cuz I get paid for it! Clowning around

We tried it for a while but it really made no difference in whether he did his chores (plus he lives with his mother full time so it's hard to integrate a plan when he's only with us 2 days a month). I agree that kids should learn the basics of the money management, however, you can teach this same value system by being on a family budget or allowing the child to get a paper route or some similar job (babysitting, mowing lawns, etc) when they are old enough.

---- Cynthia

Bonkin

posted: 11/14/2007 at 10:55 AM

Quote from zoom-zoom on 11/14/2007 at 8:32 AM:

That sounds like something that would work really well. At what age did you start this with the kids, Mike? One thing I will never do is give $ for grades. I had classmates who got dollar amounts for good grades...at the time I was jealous (heh, and used it to excuse my crappy grades), but my parents refused to pay us to do well in school. Their reasoning was that doing well in school should be a matter of good grades for the sake of good grades--not because of some arbitrary monetary reward. I agree. k

We started doing it as soon as they were old enough to beg for toys every time we went to the store. So maybe 4 or 5? It really helped alleviate the "gimmes" at the store. Now all I have to say is "Sure - you can. How much cash do you have?". Ends it immediately. Because I do not loan them anything either. We tried that and it was way more trouble than it was worth. I figure they can learn about credit when they get to college Wink

We tried the money for grades thing too for one school year. It was a mess. We don't do that anymore. This year I'm trying something new. If they make the honor roll - they get some kind of non-cash reward - that I choose. We'll see how it goes.

When it’s all said and done, will you have said more than you’ve done?

Run To Win

#2867

posted: 11/14/2007 at 1:23 PM

I don't have any children yet, but I like Nickel's method over at raising 4 boys: http://www.raising4boys.com/2007/11/14/whats-the-right-age-to-start-an-allowance/ He gives them 50 cents per week per year of age, and they split their allowance up into charity, savings, and spending money. He's written 4 or 5 articles about it over the past year or two and it seems like a good system.

Run to Win
25 Marathons, 17 Ultras, 16 States (Full List)

Mississippi

posted: 11/14/2007 at 2:17 PM

Quote from Bonkin on 11/14/2007 at 8:22 AM:

$5 per week allowance. To get this they must get decent grades that week, no trouble, etc and clean their room. The room must also pass the "Mom Inspection".

I like this idea.

Quote from Bonkin on 11/14/2007 at 10:55 AM:

We started doing it as soon as they were old enough to beg for toys every time we went to the store. So maybe 4 or 5? It really helped alleviate the "gimmes" at the store. Now all I have to say is "Sure - you can. How much cash do you have?". Ends it immediately. Because I do not loan them anything either. We tried that and it was way more trouble than it was worth. I figure they can learn about credit when they get to college

I LOVE this concept. When I go to the grocery store it never fails that I am leaving there spending extra money on SOMETHING for each child with me. I can't say no. If they had their own money and had to buy these bonus treats with their own money, they would be more likely to decide that it just isn't worth it. I will definitely work this into my final decision. The loan thing is risky. I've charged things for the older kids and they've paid me back. I just did that again when my 16 y/o just bought himself a laptop for $500. I charged it to have purchased through the credit card rather than cash...and to earn cash back (Discover). Now I'll have him give me the cash to pay for it. I gave in and allowed my 13 y/o to borrow money from me, but it's money that he has earned already, just hasn't received it yet (he worked for my boss sanding and painting some railings, but the job isn't completed, the second coat has to be put on yet so he hasn't gotten paid. He'll finish the job next week when school is out). I should have made him wait but I didn't.

Michelle

Mississippi

posted: 11/14/2007 at 2:24 PM

Quote from Davdaws on 11/14/2007 at 9:05 AM:

We do sort of like Mike's family, but with an added twist. I get paid every two weeks, so each kid (we have two) gets $20 every two weeks. They have to put 10% in savings and give 10% offering to the Church. Out of the remaining 80%, they can spend on themselves, BUT, if they get invited to a friend's birthday party (they get invited to a lot of birthday parties!) they have to purchase the present out of their allowance. We don't let them get a cheap $2 or $3 gift. It has to be at least $10. Hopefully this is teaching them some money management. My son is always very low in his funds, but my daughter recently put almost $200 in her savings account. They have certain daily chores that are expected and not paid for. There are some extra chores available that they can do to earn extra money. My son is quite often washing my wife's van so he can go to the next birthday party.

The kids' friend's birthdays add up quickly. My one son once asked me to buy a $50 item for his friend. I told him no way!!! It wasn't that I felt that this child wasn't worth that much, but it wasn't my place to be buying such an expensive gift for a child that wasn't my own! If the kids had to contribute or pay for entirely any gifts going to friends they might not accept so many birthday invites, or atleast be happier giving a cute small gift.

Michelle

Mississippi

posted: 11/14/2007 at 2:25 PM

Quote from mikeymike on 11/14/2007 at 8:55 AM:

My kids get nothin and like it!

Sounds familiar. My husband says the exact thing!

Michelle

Mississippi

posted: 11/14/2007 at 2:38 PM

Quote from clhagan on 11/14/2007 at 9:29 AM:

I did a lot of research on this last year when we were considering giving my stepson an allowance. I read a lot of varying opinions on it, but one that stuck with me was that a child should do chores because it is expected as a family member, not as a way to earn money. After all, I don't cook dinner every night cuz I get paid for it! We tried it for a while but it really made no difference in whether he did his chores (plus he lives with his mother full time so it's hard to integrate a plan when he's only with us 2 days a month). I agree that kids should learn the basics of the money management, however, you can teach this same value system by being on a family budget or allowing the child to get a paper route or some similar job (babysitting, mowing lawns, etc) when they are old enough.

You think the same way I do. I have explained to the children that in our house, with 6 family members, it can't possibly be fair that I am the only one doing all the cooking and cleaning. I work full time, I take care take of the house, and I keep up with their busy sports and social lives. I had said at one point that the only job the children would have is to keep their grades up and to behave themselves. Well, that theory has changed. I don't have them doing a lot of chores, the most it would add to would be maybe an hour each week. I think that they can afford that contribution to the family to keep our house clean. But I do like the idea of maybe just giving them $5 a week. That way when we are out and about if they want to buy something little, it'll be entirely on them. The only thing I am questioning now is if I should use the allowance as an incentive to doing the chores. I'd hate to give them an allowance on a week when they totally slacked on the chores. My oldest son had a job working at Dominos but quit for now because of school and the wrestling season. He'll go back to work after wrestling but now he's found that he misses his cash. I don't want him to regret joining wrestling so I want to try to offer to him chances to make money on the weekends. I can imagine how rough it would be for you to enforce a ritual with your step-son when he lives with his mom most of the time. It would end up causing more stress I would think. I know that I deal with that when the kids spend a lot of time at my ex-husband's house over the summer. He is VERY lax on rules and in our house it is not that way. They come home and it's a culture shock for the first week or so.

Michelle

Mississippi

posted: 11/14/2007 at 2:38 PM

Quote from Run To Win on 11/14/2007 at 1:23 PM:

I don't have any children yet, but I like Nickel's method over at raising 4 boys: http://www.raising4boys.com/2007/11/14/whats-the-right-age-to-start-an-allowance/ He gives them 50 cents per week per year of age, and they split their allowance up into charity, savings, and spending money. He's written 4 or 5 articles about it over the past year or two and it seems like a good system.

Thanks Blaine, I'll check it out. Smile

Michelle

modal

posted: 11/14/2007 at 6:13 PM
modified: 11/14/2007 at 6:26 PM

I never had a formal weekly allowance. One of my best friends growing up received 5 dollars a week for chores he did around the house. The chores including such duties as dish washing, vacuuming, taking out the trash, and mowing. I believe before he left at 17, he was getting $10-15 a week for chores. Of course his house duties increased over the years. Every 6 weeks, which was the semester period at the time, this friend also got $5-10 for every A he got in core subjects. Gifts to others (including his bro and parents) came out of his allowance. When it came to using the family's credit card everyone in their his used a centralized ledger where spending was tracked. I believe children and young adults need to have an understanding of how money works. 1. Time value of money 2. Opportunity Cost 3. Delayed Gratification 4. Giving 5. Saving 6. Investing 7. Insurance 8. Understanding that a Credit Card is not free money 9. Debt and how one can become a slave to it 10. The financial ramifications of choices we make I can point you to several personal finance blogs on allowances, if you are interested. 10 Principles Teaching Your Child about Money Should you give your child an allowance for doing choes? The Simple Dollar's Thoughts A lot of rules learned in personal finance are applicable to other parts of our lives like education, fitness and nutrition. I used to joke with one of my 2nd uncles and paternal grandfather that they needed to spend some of their lump sums.... making references to their large paunches! Big grin

Vim

Davdaws

Swadvad

posted: 11/14/2007 at 9:32 PM

Quote from modal on 11/14/2007 at 6:13 PM:

I used to joke with one of my 2nd uncles and paternal grandfather that they needed to spend some of their lump sums.... making references to their large paunches!

Ha! I've been hoarding a bit too much myself.

Allowance (Read 790 times)