Becky and I have thought about giving the kids an allowance for a few years now. I always had an allowance for doing chores when I was growing up, whereas Becky didn’t have an allowance, but had to do chores and her parents would give her money to buy things when she wanted them (like a new outfit or money for the movies). In the end, we both had money for helping out around the house.
A few weeks ago, our neighbor, Holly, gave us a great idea. She gives her kids an allowance for chores, but she makes them put most of it back into an Activity Fund.
What that means: If they get $10, they save $3 for “fun money” and they put $6 into an Activities Jar (saving it). We also make our kids give $1 back to someone in need (church or a charity). This is to be used on sports things or lessons. If they want to try out a new instrument? Great! Grab the money from your jar. Do you want new spikes? Sounds good- grab the money from your jar.
Why I like this idea: It teaches them how to look for a deal and decide if it is worth it.
“The spikes are $50, but here are some for $20. Which do you want? ”
Or… “You tried guitar last month. You never practiced and it costs $100 for the month. If you want to try piano now, you can use your money.”
We’ve been doing it for about a month and so far it is working out perfectly! The kids are doing their chores without whining (yes, really…) and they are each getting a few dollars to spend (more as they get older).
Give it a shot- it is an easy way to teach kids about budgeting their money.
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This is a great idea! I think using the phrase “activity fund” is much more effective than like a “savings jar”. It also helps children understand what they are saving up for. They’re saving for a particular goal or item, which can be hard to convey to children.