School starts next week for our three girls. They will be in 3rd, 2nd, and 1st grades – this will be their first year in public school (they have been home schooled). My wife and I thought that this year would be a good time to start giving an allowance and start teaching some financial principles in a more direct manner (we are always teaching about money!).
So I went online and I bought each girl a new piggy bank – the money savvy pig. Each bank comes with four separate compartments: one for saving, one for spending, one for donating, one for investing. The girls will earn their allowance daily – 25 cents. The first day they will put the quarter in to donate, the second day saving, the third day spending. The other two days we will split between spending and saving again. For now we will skip the investing part until they are old enough to understand stocks, bonds, etc.
We decided to give their allowance daily because if they do their chores correctly they will get their allowance, but if they don’t they will not receive their “pay”. This way if they do miss a day, they do not miss out on their allowance entirely, they can still collect for the other days. We want them to learn that they need to work to earn money, and if they goof off, well then their are financial consequences – just like in real life. Their chores are pretty simple for this year – make the bed, keep their room tidy, eat breakfast, be on time for the school bus. Obviously we will give them guidance and at first some “second” chances. The girls are pretty excited about their new banks – they have already talked about what charity they want to give to (makes a Dad’s heart proud!).
What tools are you using to help your children learn about finances? Share your thoughts and help all of us!
