Started Allowances Today
Today we started the kids allowance. We decided to double their age so they get $12 and $8 each. I decorated three jars for each of them – one for savings, spending and donation. At this point they are so young the savings will probably be converted into a long term investment when they get enough built up. I didn’t think we needed a separate jar for investments.
They were so excited to separate their money! I was surprised at that. I settled on a 50/25/25 split – 50% to spend, 25% for savings and donations. The same will happen when they get money as gifts such as on birthdays. For the donation I think the first one we will do will be during the holidays and I’ll let them each pick where they want to donate. My daughter is very interested in animals (she wants to be a vet when she grows up) and we’ve talked about donating to the SPCA. She even took the money that had been in her spend jar (prior to today) and put it in her savings jar. I know we started at the right age for her, maybe even a year or so late, and I think we are right on track with my son.