My sister and I never had an allowance when we were growing up, but I also remember having a few bucks here and there so it worked out fine. I’m it would have worked out fine for Elijah too, but Tyla and I have really enjoyed having our own individual allowances (we call it a “fun budget”) so I liked the idea of doing one for Elijah too and using it as an educational tool.
Natali Morris has a couple great posts on the topic and I’m largely stealing the ideas from her, but here is how we set it up for now:
- We’re not paying him to do chores. Everyone in our house does chores. It’s expected, not rewarded.
- Each Saturday, he’ll get $4. $1 goes in the piggy bank for long term savings. (Eventually we’ll migrate that to an actual child bank account.) $1 is for donating to church. And the remaining $2 go in his spending jar.
- For now, everything in his spending jar is a one dollar bill. That makes it easier to explain how much money he has and how much he needs for a particular toy.
There are a few ideas for expanding this in the future beyond what I mentioned above:
- If he wants to earn additional money, we’ll find some jobs for him to do around the house (not chores!)
- After he has a few purchases under his belt, I’m willing to let him buy something that he doesn’t have money for, but I will charge him interest on that loan.
It seems like a lot for a four year old to grasp, but so far so good. If this works out, we have a chance at raising a kid who understands the value of money, saving, and staying out of debt. And oh yeah the “Can I have X? PLEEEEEAAAASE?” questions while in the toy aisle have a very easy answer now: “You can spend your own money on this if you want it.”
P.S. I walked into the bank and asked for $100 in one dollar bills. As soon as those words came out of my mouth, I said, “Oh. Wow. That sounded way more dirty than I thought it would. Honestly, it’s for an allowance for my kid.” The teller got a good laugh out of it and said she sees lots of interesting stuff.
Indiana Trip
Our summer vacations were dedicated to family this year. At the end of July, we went to a family reunion in Fort Peck, MT and then a couple weeks ago we flew out to Indiana. We had originally planned to go earlier in the year, but we ended up moving the trip as it was the same week that Tyla’s mom passed away. Thankfully Southwest has an incredible flight change policy!
We were in Indiana for 8 nights, and, as usual, we had a great time. It was so relaxing to just hang out with very few responsibilities. Luke, Rachel and David came for the weekend so that added some extra fun. Grandpa and Lynnette came down for the day too so Grandpa and I could celebrate our birthday together. We didn’t do anything huge but we had a bunch of good day trips including a botanical center, lots of tractor rides, putt putt golf, go karts, the Studebaker Museum and a water ski show.
Thanks again to Dad and Mom for hosting us and spending so much time playing with Elijah!