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[quote=Anonymous]I just give my kids a weekly allowance and let them figure it out. I believe in learning through lived experience.

My five year old gets $5 a week and my 3 year old gets $3. It's not payment for chores because contributing work is expected part of being in the family; they have chores but that is not tied to their allowance. The allowance is purely a money management learning tool.

We don't buy them toys often (they usually only get them at Christmas) and so when they want something they see in a store, we say, "you can buy it with your allowance if you want." Usually, they do not want to buy it then and immediately drop the subject!

There are no rules except they can't spend it on stuff we do not normally allow them to have; for example, they can't buy a ton of candy and eat it all at once. Otherwise, we have no requirements. We don't make them save any of it, or give any of it away. I feel like charity is not really meaningful in the same way if it is forced and not voluntary. Same with savings...

My older child quickly learned key concepts like (1) money that takes a long time to save can disappear quickly and (2) the money you have is all the money you have to spend (3) you can get a lot more toy for your money at thrift stores, etc., etc. He's been saving his allowance for a long time now with no apparent goal except the joy of watching the money pile up.

My younger child is more clueless when it comes to money, being only 3, but she is currently trying to save up for a giant stuffed animal that costs approximately $100. I do not know if she will meet this personal financial goal, but at least she has one and she talks about it. And, you know, it's her goal that she set for herself and she will suffer the consequences for not meeting it.

I also routinely talk openly about money, about how much things cost, and how I make decisions about money. I have explained concepts such as taxes (we all contribute money to pay for things like the police and the library), and paying for water and gas, etc.   [/quote]

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