Comments on: When Should Parents Start Giving Their Kids Allowances?

By: Free Money Finance

Free Money Finance — Fri, 17 Mar 2006 11:46:58 +0000

Star Money Articles for the Week of March 13

Here are interesting posts this week from the MoneyBlogNetwork members and beyond: Blueprint for Financial Prosperity is using 0% balance transfers to pay off debt. Consumerism Commentary asks if your house is an asset or a liability. AllThingsFinancia…

By: Mighty Bargain Hunter » Roundup for week of 13 March 2006

Mighty Bargain Hunter » Roundup for week of 13 March 2006 — Fri, 17 Mar 2006 06:52:45 +0000

[...] Here’s a good discussion on when to start giving your children an allowance. (All Things Financial) [...]

By: Dave

Dave — Wed, 15 Mar 2006 09:07:47 +0000

I think they should start giving you an allowance at 20 right through until 35. D (seeing as though that would help me out).

Singlemom, I think it is great that your kid is saving up already! Don’t worry about her saving up ALL her I am sure she will soon learn to part with some of it when she gets to the age of wanting the latest stylish clothes etc.

sounds like you are doing a great job!

By: raising4boys.com

raising4boys.com — Wed, 15 Mar 2006 04:23:50 +0000

We do it with our three year old (as well as our six and eight year olds) and he ‘gets it’ surprisingly well. He’s learning to save, and also learning patience. It’s working pretty well, although he does have brothers to learn from.

By: SingleMom

SingleMom — Wed, 15 Mar 2006 02:48:07 +0000

Thanks for answering my question. I see how it can be a learning experience for both the parent and the child. I started giving my daughter an allowance when she was 8. I’ve tried just about everything you’ve mentioned but I’m still not sure if I’m really teaching her anything. I don’t attach allowance to chores because she’s responsible for those anyway. She gets $5 every two weeks with the potential of earning more by going above and beyond my expectations. She’s a pretty good kid, so she usually earns about $10 every two weeks with bonuses for good grades and responsible behavior. She saves about 20% without any persuasion; however, she will not SPEND any of it. I try to make her spend money but she refuses (lol). Crazy huh?

When she asks for something, if I say you have to spend your own money, she doesn’t want it anymore. On one hand, that lets me know she didn’t want the item that bad, but on the other hand, I wonder if it’s my fault that she hoards money. Other than teaching her about compounding interest with her savings acct, I don’t know how else to teach her about money if she won’t spend it.

This past week, she did the sweetest thing though. Her best friend had a birthday and she took ALL of her money and just gave it to her. While giving is something I teach her as well, I don’t think she even cared how much she was giving away.

This has been a mind boggling experience, but I’m learning as I go.

By: Carl

Carl — Wed, 15 Mar 2006 01:10:05 +0000

My wife and I are going to start with our 17 month old soon, 50 cents right now increasing 50 cents for each birthday. It will just go into his piggy bank for a few years. Then as the piggy bank fills up we deposit it into our checking account to be transfered to his savings account. Hopefully by 5 years old he will have $500 – $1000 in savings his allowance plus any $$ given as gifts to him. He will then be able to see some interest on his savings and hopefully want to grow his savings.

By: Tim MMF

Tim MMF — Wed, 15 Mar 2006 00:38:56 +0000

I think people can start pretty young if they are directing their children and using it as a learning tool, not a handout.

From what I’ve noticed, parents tend to give allowances but don’t offer any guidance regarding saving or budgeting. They just give the money and that’s it.

You’re right though, it is a learning experience for both.