We have recently decided that we needed to buckle down and get Jellybean and Bug an allowance. We have talked about it forever but we always pushed it to the back burner because we couldn't afford it at the time. We have decided that whether we can afford it or not is not the question. The question really is, can we afford not to?
We have struggled our entire relationship being tossed in wave upon wave of debt. We have just this year gotten so close to out of debt we can probably say we are. At this point, we owe $600 and that is it! Hooray!
Anyway, we thought that it was incredibly important that we teach our children about money and how to save it, and how to spend it properly. This is why, both, Jellybean and Bug get $15 each/month. At the beginning of the month I gather the kids in the kitchen and dole out their allowance (that they earn by doing chores around the house).
Each child's $15 is broken up into the following each month:
1 - $10
2 - $2
1 - $1
Each of the kids have three jars to put their money into: one for "saving for", one for "spending money" and one for "tithe/offering". They each, and joyfully I might add, LOVE to give 10% of what they earn to God for tithe and both willingly add money to it for offering. It's one of the highlights of the month for them - getting to fill out their very own offering envelopes. Each of them have decided to add $0.50 to their tithe of $1.50 to give an even $2.00.
Another of the jars is where the kids put $3.00 of the money to spend that month on whatever they want at the candy store, dollar store or to save to add with next month's for something bigger.
The third jar is the biggest jar of them all as it is going to have to hold and save a fair bit of money. Both kids are saving money to buy themselves each a NintendoDS. They are saving birtday money, $10 each month of their allowance money and they have bags upon bags of pop bottles and juice boxes to take to Sarcan to get recylce money back. (I am hoping to do that tomorrow.)
What do you do for your children as far as allowance goes? For teaching them the value of money? For teaching them how to save and for teaching them how NOT to wind up where we were, so far in debt we couldn't see any light at the end of the tunnel?