I have a 5 year old daughter that currently can earn $2 a week for allowance. Her chores include making her bed/cleaning her room (she gets $.10 for that, per day), folding towels, unloading the silverware and helping me with trash. I have thought about upping her allowance a little so that she can buy real toys instead of always hitting the dollar store! Does anyone else give their kids an allowance and how much? I'm trying to teach her about money and saving up for the big things she wants, how do y'all handle this?
Hey there Kyliesmama-
I think $2.00 a week for a 5 year old is an "age appropriate" allowance, however, if you feel like it should be upped, then that would be a choice only you can make.
Maybe try thinking of it this way, children LOVE to get money, and a dollar can seem like a hundred to little ones. An allowance of $2.00 a week isn't bad for a 5 year old, and at the same time, instead of hitting the dollar store constantly, try and help her to set a goal for something she would like to save for. Maybe take her to Walmart and find a toy that's maybe $10.00, right? Well, you tell her that if she can save for 5 weeks, she will have enough money to buy this particular toy. This way, you are also teaching her the value of working and saving your money for what you REALLY want instead of just spending the money you have because the money is there.
I don't mean that I think you let your daughter spend her money simply to spend it, because that's not at all what I'm trying to imply. It's just how my mom explained it to me when my kids started earning an allowance.
As they got older, I made a chart and hung it on the fridge. I set a certain monetary amount for different chores they could do (above and beyond their "set" weekly chores) to earn extra money, such as helping me dust would earn them another .25 cents, helping me vacuum would earn them another .25 cents, and so on. When they helped with an extra chore, we would check that item off on the chart and they knew they had done extra and would get the extra money with their allowance. They liked this system because it gave them extra money, and I liked it because it gave them incentive to help with extra things.
It sounds like your little girl is a great helper. Some kids want an allowance and don't actually want to earn it, ya know? You are already teaching her a valuable lesson and this is a good thing.
We did that with our oldest daughter and it was quite sucessful and taught her the value of money. She worked for it and would spend it wisely.
Now with our youngest daughter, it is completely different. She does not like money. She wants prizes or rewards. When she lost her 1st tooth, she got $5. This did not thrill her at all. The 2nd tooth, she got a surprise and was the happiest little girl ever.
Allowance will not be an incentive for our daughter unfortunately.
My children started getting an allowance at 4 yrs old because this is when they started to show an interest in money. We never tied the allowance to helping around the house. They get an allowance because they are part of the family and they need to help around the house because they are a part of the family. When they wouldn't be responsible with chores I would tell them if they aren't responsible enough to help out then they aren't responsible enough to get allowance. This has worked out pretty good for us. I give them a dollar raise every year so when they were 5 they were getting $2. They both have savings accounts. I really don't buy them much anymore. The 9 yr old makes $6/wk and the 6 yr old makes $3. They make their own decisions on what they are going to spend their money on.
I totally agree with Ozzybug about the saving idea. My nieces and nephews get certain amounts for certain chores etc. and they have the choice of keeping the money or putting it in the family Disney fund.
There are four of them and in 2 years, they have saved $1,000. My sister-in-law is taking them next month. Of course she is paying for the trip and accomodations, but that will give them each $250 to spend on extra things they would like while they are there. They are so proud of themselves and since they've been saving instead of spending, there's a lot less toy and game clutter around the house.
You don't have to go as far as that, if it's not in the family budget, but with spring and summer coming soon (I hope) maybe a nearby themepark or beach vacation would be something they could save for.
Just thought I'd throw this in the mix. Good luck, whatever you decide to do!
Ozzybug, I have been letting her buy little things at the dollar store because she hasn't been getting an allowance for that long and I wanted her to enjoy the freedom of spending her own money. I agree with what you said about wanting her to save up. She is just so impatient! I have asked her what is it that you REALLY want, and she has told me so I have been trying to explain the importance of saving the money instead of spending it on little things just because you can. I guess that next step is actually taking her to the store and letting her see again the toy she really wants?
tlhalabama, what kind of surprises do you do for your daughter? I feel like I have been having to hound my daughter lately to get her chores done and maybe the money isn't enough motivation? Or maybe we need to change it up from time to time....