Kids and Money

Our refrigerator is blanketed with the typical artwork of magnets, school hot lunch menus and fingerpainted spirals. Besides all that is a dry erase board with each child's name and a number beside it. The number respresents the amount of money we, the parents, owe them, the children.

So it begs the question, what is the going rate for allowance these days? Or better yet, do you even give an allowance? Do you pay weekly, monthly, on an as needed basis (Friday night dance or must have pair of shoes), or, like me, in IOU form?

I'd like to say I've taught my kids the all important laws of money: give, save, spend. But honestly, having three kids at different levels of financial understanding brings out the Ogre in me. "All your money must go into your piggy bank where it will be transported to your savings account!"

Now, having said that, I suppose they've picked up a few lessons along the way. I don't think my kids have big issues with the gimmies. They only get new clothes, shoes, toys, video games for Christmas, birthday (May/June), back to school, and if something falls apart or causes blisters. When the urge is strong for a new toy or game, we are not unreasonable. We tell them they can buy it with their savings. More often than not, that curbs the urge so I guess they are gathering an understanding of how painful it is to part with your own hard-earned money. They are also told to refer to #3 below.

This is the current plan in our house.

1) There is no allowance. If I followed the superparenting guidelines of monitoring the division of giving/saving/spending, I might support an allowance. But, I don't have that much energy.

2)The kids earn their money. Outside of the basic, every day chores that are a requirement (put laundry away, feed dog, unload dishwasher), they are assigned an optional chore each week. They do it, they earn it.

3)In addition, there is a list posted on the refrigerator. Each chore can earn them money if they choose to complete them. They don't, but the list remains.

So, what is each chore worth? I have no idea. In our house, we pay $1/chore. Therefore a $20 video game equals five months of bringing up the garbage receptacles. Do you want it that bad?

What policies do you use? Do your kids manage money well or burn through it and come back for more? Do they have a savings account? Share!