Monthly Archives: August 2012
Instead of reading it myself, because I was reading a thousand other books at the time, I asked her to tell me about it. I thought this was really interesting. The book details how she and her husband put their sons on a monthly “salary” on the first day of 6th grade. They figured how much they would normally spend on the child in a typical month (clothes, snacks, school lunches, videogames, etc.) and instead of fighting over money with the child, they gave the child that month’s “salary” on the first of each month to spend as he wished.
The only rules were that the child had to give 10% away (to church, charity, or someone in need, etc.), save 10% (in a bank account or other interest bearing account), and the other 80% was his to spend (they did explain that money had to be spent on items which were acceptable in the eyes of their family. They had to learn to budget. If they knew they were invited to a birthday party, then they would have to set that money aside and buy the present. So if they ran out of money for that month, they were not able to attend whatever function they could have if they had the money.
We are doing this with our kids and it has worked out fairly well. We have tweaked it to meet our needs, but they are getting the hang of it. It has been fun to see them give and also not spend when they know they have only so much money to go until the end of the month.
What a great way to teach your kids responsibility with their finances and the importance of giving!