Allowing the Allowance

iPad fund bank

Wow. I can’t believe it’s already that time of year. School is back in session, so it’s a little quieter around our place now that our daughter is back in school. I cannot believe she is now in third grade. Time really does fly.

Along with school comes a few additional expenses. We all know that there are school supplies to purchase and even some new clothes. And I’m sure you have encountered the requests that are followed with a, “But I rrreeeaaalllyyy need it!” My favorite comment that my daughter provides is, “Isn’t it really cool?” Generally this means she really wants it. The way we have chosen to handle those types of requests is by allowing Kelly to purchase those items with the money she earned.

Last summer, Kevin and I chose to provide Kelly with an allowance. We formalized it a few months later with a weekly chore chart. I know that this sounds technical and boring, but it is a plan to help her know how much money she will receive each week and that she must earn her allowance. Her chores are simple and we believe appropriate for her age. They include feeding the dog, putting away her laundry, and dusting the furniture. Each chore is assigned a dollar value. At the end of the week, she and Kevin sit down together to determine how much money she earned based on the number and types of chores she did that week. Some weeks she receives the full amount; some weeks she receives nothing because she chose not to do her chores. We lead her in using the 10-10-80 rule with her money — 10 percent is set aside for giving, 10 percent is set aside for saving, and 80 percent is available for her to choose how to spend it.  How she uses her money has varied through the past year, from purchasing a closet to hold her stuffed animals’ clothes to slushies to art supplies. Currently, she has decided to save money to purchase an iPad. There is a jar on her desk labeled “iPad Fund.”  Though it is currently empty, I admire her desire to save for something she truly wants.

I really believe that providing an allowance to your child at an early age helps them to begin understanding the concept of giving, saving and spending. It also shows that we trust them and that we believe in them to make good decisions. It encourages parents to work with their children and to teach them good habits. And maybe we will learn a thing or two from them along the way.

Do you provide your child with an allowance? If so, what must he or she do to earn it?