Allowance basics for beginners like me

Ask anyone about allowance and you’ll get a wide variety of answers –  when to start, if it’s tied to chores, how much money, every detail.  While it’s good to know friend’s opinions, what are you going to do?  What am I going to do?  I ask because I still have no idea what to do.  Recently, I found a website that is helping me make sense of it all.  (or should I say cents?)

It’s called Money Wizdom.  Money Wizdom says that “kids ages 5 to 8 pick up budgeting skills best when they get a regular weekly payment that’s not tied to completing chores or other work around the house. . . you’ll have plenty of time later to teach them about earning money.”

Here’s what caught my attention -- budgeting. I mean . . .  budgeting is a great goal.

I wasn’t sure why to give allowance.  However, if it’s to teach my child budgeting, that makes sense to me.  A goal.  Groovy.

Money Wizdom offers newbies like me a fantastic free download to get started.  It shares four components to allowance:

1.  Set the rules. (no sugar food, no stuffed animals, no video games, etc.)

2.  Set the pay.

3.  Set the budget. (save, spend, plan, give)

4.  Set the pay day.

So, now I’m ready to get started!  What about you? Or area you already good to go with allowance?  What works for you right now? I’d love to hear what you’re doing and why.

Perhaps like me, the holidays bring up big issues like  needs versus wants, what things cost and how we spend our money.  To help, Money Wizdom’s website provides home activities about these types of topics called Money Moments.

I encourage you to check out Money Wizdom and see if it will help your family, too.  Tell them Imagination Soup sent you!

  • http://adventureskids.blogspot.com Catherine

    I’ve just started thinking about this for my son, this helps a lot – it suits my thinking because I didn’t want to link chores to money (I think the basic chores my son can do count as being part of a family). Thank you.

  • http://babookworm.wordpress.com Mindi @ B.A. Bookworm

    This is a really timely post! I struggle with the whole allowance issue but this information really helps. Thank you!