Tag Archives: impulse control

Starting an Allowance

I was rather startled to read on several parenting websites that the “standard” allowance these days is considered to be $1 = 1 year of age. Seriously?  That means a five-year-old gets to spend $5 per week and a nine-year-old … Continue reading

Posted in Parenting with Renegade Rules | Tagged , , , , , , , , , , , | 7 Comments

7 Responses to Starting an Allowance

  1. Emily Plank says:

    Hi Heather,

    I love this post! I just finished reading “First National Bank of Dad” (which I have to say, I almost didn’t buy because I was offended by the bias communicated through the title…but it was highly recommended from other like-minded parents). It was a good read, and recommends the same thing you’re suggesting. It also recommends paying interest, which I thought was a very compelling idea – interest to encourage savings, and teach the actual workings behind the financial system. Anyway, thank you!

    Best, Emily

    • Heather Shumaker says:

      Thanks for your thoughts, Emily. Parents are a child’s first experience with money and banking. I hadn’t thought of paying interest – my 8-year-old has a bank account that’s supposed to teach that – but the rates are so dismally low right now that the idea of interest barely adds up.

  2. Heather – “I want to teach my children money management, not how to be constant consumers.” I absolutely love your take on this.

    And the fact that, “An allowance is given to teach a child about money. It should be separate from chores.” yes, Yes, YES!

  3. I agree with allowances not being tied to chores. Amounts and when to start giving kids allowances should be on an individual basis and like you said, tailored to where you live.

    The only constant there should be is some sort of savings component that teaches delayed gratification and working toward long term goals. I also think paying interest is a great idea.

    However, interest rates are so incredibly, artificially low that showing a child his ten dollars in a savings account earned a whopping 0.04% last year, which translates to less than one cent, might be so depressing that he/she decides to heck with saving a blows it all on video games or energy drinks.

    • Heather Shumaker says:

      I hear you…interest rates are so low they can be meaningless to kids. I think that’s why some parents act as they “bank” themselves and offer a decent savings interest rate so the kids get it. Good point indeed.