Quagzmort
New Contributor
My wife and I were talking the other day about teaching our child financial responsibility. The discussion quickly turned to the topic of an allowance for our son. We weren't sure how we would handle it in a few years when he gets old enough to receive an allowance. We came up with a few ideas that would allow us to "give" our son disposable incmoe while at the same time educate him on finance. Obviously at the young end of the scale the ideas are very simplistic and they grow to be more involved as our child nears graduation.
This is all VERY concept stage, but it's something we're doing to develop. Feel free to add ideas if you so choose.
--
Prepare a list of "chores" that our child can complete. They aren't required to complete the tasks, but they will be made aware that they won't be paid unless they do the work. The amount they earn is completely up to them. This is more of a job for the younger years, but as they age we will be able to shift them from the E to the B/I in their thinking.
We would work with our child to negotiate a fair price how much each job is worth, and whne they are older require them to provide an estimate every 6 months or so as to how much they want to complete each task.
Examples for the younger child:
- Taking out the trash is worth $1.00 a week.
- Clearing the kitchen table after dinner is worth $.50 per meal.
- Picking up toys/room $1.00 a week
- etc...
Older child:
- Taking out the trash is worth $2.50 a week
- Doing dishes is worth $1.00 a day
- Laundry is worth $1.00 per load
- Etc...
The requirement (depending on age) would be to fill out and present a bill each week to the parents. As the child grows older and their understanding grows, introduce accounting and other aspects of running a business into the mix. Require them to journal, post, trial balance, etc..., come up with new and innovative ways to earn money.
Investing and other concepts will be introduced when the child is old enough (lots of ideas here on how this can be done... may post later)
So basically we want to teach our child (maybe children later on :smxB
the basics of money, business, investing, etc.. from an early age and the weekly allowance is a great area of opportunity to do this.
Quagzmort
- EDIT - I just read ATW's thread on this topic. Some very good concepts there as well. http://www.thefastlanetomillions.com/showthread.php?p=45334#post45334
This is all VERY concept stage, but it's something we're doing to develop. Feel free to add ideas if you so choose.
--
Prepare a list of "chores" that our child can complete. They aren't required to complete the tasks, but they will be made aware that they won't be paid unless they do the work. The amount they earn is completely up to them. This is more of a job for the younger years, but as they age we will be able to shift them from the E to the B/I in their thinking.
We would work with our child to negotiate a fair price how much each job is worth, and whne they are older require them to provide an estimate every 6 months or so as to how much they want to complete each task.
Examples for the younger child:
- Taking out the trash is worth $1.00 a week.
- Clearing the kitchen table after dinner is worth $.50 per meal.
- Picking up toys/room $1.00 a week
- etc...
Older child:
- Taking out the trash is worth $2.50 a week
- Doing dishes is worth $1.00 a day
- Laundry is worth $1.00 per load
- Etc...
The requirement (depending on age) would be to fill out and present a bill each week to the parents. As the child grows older and their understanding grows, introduce accounting and other aspects of running a business into the mix. Require them to journal, post, trial balance, etc..., come up with new and innovative ways to earn money.
Investing and other concepts will be introduced when the child is old enough (lots of ideas here on how this can be done... may post later)
So basically we want to teach our child (maybe children later on :smxB
the basics of money, business, investing, etc.. from an early age and the weekly allowance is a great area of opportunity to do this.Quagzmort
- EDIT - I just read ATW's thread on this topic. Some very good concepts there as well. http://www.thefastlanetomillions.com/showthread.php?p=45334#post45334
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