May 7, 2010

Making the Big Money!

Since Little One turned four in March, she has been receiving an allowance. We discussed this concept for quite some time before hubby and I agreed on what an allowance means, how much, etc. Angie gave us a good outline from which to start our discussion.
First, her allowance is not tied to chores since she is expected to do her chores anyway. Neither will it be tied to grades in the future (a hot topic: hubby thinks it would have helped him in school to be paid for grades; I liked school enough that paying me would not have mattered). I believe that paying for chores (except perhaps something extra done by the child) or grades suggests that one should get paid for doing what one should do anyway.

We pay her on Fridays at 50 cents per year, so she currently gets $2.00. We require her to put 30% ($0.60) in the "saving" piggy bank, and give 10% ($0.20) to the church. The rest goes into the Hello Kitty bank to spend as she wants.

We've noticed several things since starting the weekly allowance. First, Little One is excited to put her two dimes, along with our Sunday envelope, into the collection basket at church. Second, she doesn't question the idea of putting aside some money for long term savings. And finally, we've been able to significantly cut down on the "gimmies " (from a Berenstain Bears book). All it takes to get Little One to stop asking for a toy is to tell her that she can use her money if she wants.

To me, the allowance is meant to teach fiscal responsibility, sharing with others (especially those less fortunate), and patience. She is still young, and it’s only been a few months, but I am pleased so far!