Allowance..

How cute is this kid?!
Eva turned seven and her mom was thinking about allowances.

It got me thinking about allowances.. what I did when my kids were young.. what I would do differently.. how much is enough.. how kids could earn it.. spending.. learning.. 

It got me thinking about kids and money in the wee hours of the morning .. instead of sleeping. 

Jet lag.. my mind won't stop. 

So.. I figured I should just write down.  It's important!  Besides.. I gotta get some sleep.

We get money, and we spend money.  The best way to get money is by earning it.  

Earners..

Kids need an allowance to learn how to become contributing members of society.  Us baby boomers need to guide our kids down the road to becoming tax-payers, not recipients.

I figure they need a one: aregular wage, as well as two: the opportunity to increase their earnings.

The regular income could be a basic allowance.  Say, $5 a week.  Ok.. I have no idea how much a basic allowance goes for today.  But whatever the amount,  this money is provided to kids for just being responsible. 

So we need to define.. Responsible.  I figure.. They go to bed at night, get up in the morning and get ready for school.  Parents and children working together can decide what it looks like to them: maybe they need to dress for school.. It may not be their responsibility to do the laundry, but they may need to be sure their school uniform is clean before they go to bed.. it may mean mom needs to be reminded to wash it.  Kids need to go to bed at night, make their bed in the morning.  They should  pack their reader, check that mom has packed a healthy lunch.. A discussion makes sure both parties agree.. if you are going on a journey together, you need to be on the same road. Decide together what it means to be ready to go to ‘work’, which for a child, is school. 

The extra cash can come from extra chores.. also decided on at a meeting between child and parent.  Maybe good comments from teachers, or other parents could translate into a term end bonus.  Of course there may need to be limits.. kids need to understand that their parents are the consumer, as well as the adult, and in charge of their own money.  They shouldn't have to pay for crap they don't need.. or even stuff that isn't in their budget.  

Make it real.  

Honesty is always the best policy.. “I’m not comfortable with that.. I can’t afford it this week..”  

An allowance can help people get ready to be.. 

Consumers

I think I did a pretty good job helping my own children become earners.. but I didn’t think so much about developing their ability to be good consumers. 

Sorry about that guys.  I just never thought of it I guess. 

Kids should be encouraged to give a percentage of their income to a charity.  I think this important.  The choices should not be about whether or not to give to a charity, but what charity.  There are food banks, foster kid programs etc.  We can really help our kids be more thoughtful members of society, and they will be all the happier for it.  

Kids need to think about how they are going to spend the rest of their money.  They may need to develop a budget: 'how much are you going to save?.. 'where are they going to save it?'  What bank is closest, has the highest interest.. supports the community..  Should they open a bank account at all?  What are they saving for?  What are their goals? 

After the kids put a percentage in the bank, learning about compound interest and bank charges, and figure out a charity to donate to, they need to learn how to be thoughtful shoppers. 

How long is their purchase going to last before it ends up in the rubbish.. is it recyclable?  Could it be donated to the local Sally Ann.. will it be used up..

And who produced it?  Was it made in a sweat shop in a third world country?  Is it worth paying a little more for in order to make sure that workers were paid a decent wage under safe conditions?  Is it made in Australia?  Is that important? 

And parents could make it clear that they are still their parents and do have a say in all this.  Parents don’t want to provide extra funds if their kids are just going to spend it on the child equivalent of cocaine and pornography: coke and lollies.  We are still parents after all. 

Yup.. it’s the teacher in me I guess.  A kids allowance is full of opportunities to guide our children through so many of life’s challenges.  It is a chance to really share our values and develop critical thinking skills. 

I'm going to bed.  It's your turn to think about it.  
I'm sure I'll find something else to keep me awake...