Bilingual life and more

pondering allowances
December 20, 2008, 11:43 pm
Filed under: Uncategorized

Michael and I started talking about teaching our kids about money. It is said that it is never too early to teach them about money. So, naturally the question of  an allowance came up.

A few questions arose: What is the right age to start? How much? When to start?

Anna is now 8 and Emily 6. They will turn 9 and 7 at the beginning of February. They do have relatively similar interests. Both will get DS’s for Christmas, like the same games and toys, but Anna has earrings and certainly is 2 years older, which shows here and there.  In that way, I am wondering if we should then make it a point to give Anna more – one positive of being the older one. There are not only responsibilities, but also preferences to being the older one. She is always being held accountable for being the older one, should show that she is 2 years older than Emily. So, why should she not get one perk out of it?

What is more important is what we hope to teach them through the allowance. Both, Anna and Emily have been asking about getting Webkinz or other toys, this and that. Anna wants other earrings. Emily wants a necklace for her and her best friend. Our thought is that they can save for it. We have gone the purely earning route by making their bed, cleaning the table, picking up, etc. but it takes quite a bit of time and I believe that they are too young for that.

We will probably start an allowance with them at the beginning of the year. We thought, we would request them to save a certain portion of it, and let them record the rest. If they want something, they can buy it themselves. They will have to find out how much money they need and how long it will take them to save for it, or how much they will have left over.

The really good part about this is that we are not people who just buy them stuff anyways that is not really necessary. So, we will still get them the necessities, and they will learn how to save up for the niceties. That is how it will hopefully work. We will see! It might take a bit of time for them to really understand it, but it hopefully is a step towards understanding money matters.


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