Anonymous wrote:

Anonymous wrote:We set up bank accounts for our kids and do automatic weekly transfers. Partly that is because we are not good about having cash on hand for three kids every week, and part of that is because my kids are young enough that cash burns a hole in their pockets. It's worked pretty well for us -- they can watch their money grow, and if they want to spend it on something little we can give them some cash and get paid back by a transfer from their accounts, and if they want to buy something bigger we can have a discussion about the pros and cons of the purchase. It's ultimately their decision but they are learning about short-term vs. long-term gratification.

With crappy interest rates, where have you put it that kids can really watch it grow noticeably ? Any suggestions?

We actually give interest to our kids. They keep an excel spreadsheet/balance sheet with weekly allowance, then we issue interest once a month on savings. They keep their money in a cashbox, which has worked better than any bank they ever had. We also tried virtual banking but that didn't work for us. The kids do better with actual cash. With the balance sheet they keep track of the last time they got their allowances (sometimes we miss a week or two) and their expenses. ALso we charge tax on junk food they buy. This definitely cut down on the candy and red gatorade at swim meets, but they still choose to buy candy at times, even knowing the rules.

OK, had to google Moon Jar, it's cool!

We've come a long way since I took my blue passbook savings account into the bank and deposited my money - but of course, back then, we got 5.5% interest and I loved to watch my money grow...

We use YNAB for all our budgeting, and so when any of us want something we check the balance. All funds are allocated into categories such as "groceries," "eating out," "fuel," "charity," "Dad discretionary," "Mom discretionary," and "Kid discretionary." Kid discretionary is his allowance, plus any checks he gets from relatives for birthdays, or that we pay him for doing special chores. You can transfer money around on an app or on the website.

We have this same set-up (though 50/25/25). They each keep the savings and charity money in separate marked envelopes. Their money for spending is in a wallet or piggy bank (depending on the child's preference).

Every so often, I offer to deposit money into their savings accounts for them. We got them savings account from the same place where we have our checking account (Wells Fargo)--took them in to do the paperwork one day. It has been very simple, since we can transfer money electronically from our own checking account.

When it's time for charity giving, they bring out their envelopes and give us the money--we then donate online.

(BTW, I know you didn't want discussion but since someone was critical... My kids really take it seriously when we help them figure out what charitable organization to give to--we do that once or twice a year, when enough has accumulated. I think this has worked out great.)

Anonymous wrote:

Anonymous wrote:Let's put our different views on giving kids an allowance aside and focus on practical as you suggested... ? My 8 yo has a Capital One 360 kid's account and he does deposits from my iPhone with me watching. He gives me cash, I write him a check and taught him how to do a mobile deposit. He keeps his spending money in a wallet in his bedroom.

I have a similar set up. My kids have 360 accounts and I automatically transfer their allowance each week. When we are out and they want something they can ask to check their bank balance. If they want the item, I buy it with my debit card and transfer the money from their account to mine.

This is our setup, except I got them debit cards linked to their accounts. Now, if they want to spend allowance, they can do it (and easily keep track of it) themselves.

Anonymous wrote:We set up bank accounts for our kids and do automatic weekly transfers. Partly that is because we are not good about having cash on hand for three kids every week, and part of that is because my kids are young enough that cash burns a hole in their pockets. It's worked pretty well for us -- they can watch their money grow, and if they want to spend it on something little we can give them some cash and get paid back by a transfer from their accounts, and if they want to buy something bigger we can have a discussion about the pros and cons of the purchase. It's ultimately their decision but they are learning about short-term vs. long-term gratification.

With crappy interest rates, where have you put it that kids can really watch it grow noticeably ? Any suggestions?