dollars and sense

allowance was something i used to be opposed to.  i believe that children should do chores around the house just the same as adults without the promise of getting monies for it.  growing up i was expected to wash dishes, tidy and clean house every saturday, etc. without ever getting a penny for doing so.  so when kai brought up the subject of getting an allowance (how did he even know about the subject!), i immediately said 'no way'.  but i have since changed my mind after doing some research on the subject. 

i wanted to know if it was possible to separate monies from basic expectations of contributing as a family member.  i have a smart boy and i wouldn't put it past him to, for example, decline clearing the table because he didn't want his monies that week.... uh, i don't think so, you clear the table because it's the polite thing to do when you part of a family.  right? 

the main benefit of an allowance is raising financially literate children.  children who are savvy with their monies and know how to save, share, and spend.  kai, for the most part, already has some understanding of this.  i have always talked to kai about monies.  like the 'sex talk', i am not shy about letting kai know about the family finances (he knew all about the uterus, egg, and sperm when he was three!). 

save - i opened a bank account for kai a couple of years ago so he could deposit his birthday and xmas monies.  he loves watching his account balance grow.

share - when kai was littler he had a piggy bank he used for pennies.  when a friend's charity - hands up for africa - was collecting pennies for their annual event a few years ago, kai agreed to give all his pennies.  at his toonie birthday party last year, he donated half the monies to unicef's school program.  he started a 'papa's bad word' jar and once it was full he donated half the monies to the spca.  he has another such jar on the go (it's for a good cause and the bad words aren't really all that bad, really).

spend - when kai wants a toy i ask him if he is willing to use his money to make the purchase.  most of the time he will say no. if he does want to use his own money (and the purchase is reasonable) i will take him to the atm to make his withdrawal (if i pay for him, i take him afterwards so he can pay me back).  also, when we grocery shop and he wants something, i will always talk to him about it, 'yes, i think we can spend the extra $5 for that purchase'  or 'not today, we will have a big grocery bill this time'. it works well.


what actually sold me on trying this allowance thing out was when i read that it would provide structure and consistency in children's exposure to money.  i really like this idea.  practice makes perfect, yes?

so how do i give an allowance without tying it to chores?  kai and i came up with the idea of $8 for extra awesomeness.   kai receives $8 a week when he goes above and beyond the basic expectations i.e. getting ready for school without distractions, taking extra care of his things, putting his clothes away in the hamper or hanging them up (i don't want to find his underwear under the bed anymore).  when there has been little or no display of awesomeness during the week it will effect the amount of his allowance.

we also spoke about allowance expectations.  kai is aware that he will use some of his money to save for a rainy day (or university fund), to give to charity, and to spend.  we picked up the perfect 'piggy bank' (although i wish it were see through). we will keep a log so kai can tally his earnings.  we plan to start next week, i will keep you updated!

have a great weekend, spend wisely!