I’m sure this is not going to be a new things, but I was thinking about something. Teaching the kids how to budget as they grow up will help them as adults. Even though I know how to budget, I haven’t exactly had a good opportunity to budget myself. However, after the move we will be budgeting for sure so that we can save for activities and things we can do with the boys and have good memories.
I was thinking about doing a weekly “allowance” kind of thing but base it like a paycheck. I would probably use real money and just have piggy banks or something to save money.
They can do some small chores or help us doing some tasks around the house and pay them on that. Can do $10 a week each and take out like 10-15% as “tax” and plan out what to do with the rest so they can budget and save for the future. I would take the “tax” money and put it in a separate piggy bank, or whatever I decide to use, so that after a while I can just give it to them.
As they get older, I can increase the weekly “paycheck” every year, or I can teach them that if they feel like they’re doing a good job at their tasks they can ask for a raise every 6 months. So we would start January 1st and they can ask for a raise July 1st and then repeat the process. They can come ask me for the raise, and I will talk with my wife about what she thinks and then we can let them know by the end of the day. $0.50 weekly raises. So it would be $1/week raise after a year.
Start at $10/week and go up $1/week every year
Start at $520/year and go up from there
Anyway, to break down the thought process~~~
- Start at $10/week
- take out 10% as taxes ($1) [$9 left]
- Pay yourself 1st – take out $2 for savings [$7 left]
- Take out $3 for “living expenses” [$4 left]
- Take out $2 for “auto loan” [$2 left]
- Take out $2 for “debt payments” [$0 left]
Obviously these amounts change as they get increases
As they get older and start working, before turning 18 and possibly moving out of the house, the money we have been putting to the side will go towards helping them get a car or something.
I believe that teaching them these responsibilities will help them as adults. Or at least I hope it helps them as adults. I will also give them some books to read/listen to to help learn about finances and stuff. Even if that means I just give them access to my Audible library lol.
Just like any good parent, we all want what is best for our children. We want to teach them things that will help them achieve great things in their adulthood and eventually their careers. Some people need more help than others, and some people use their lesser fortune as motivation to do great things.
All in all, I just want my kids to go out into the world with as much knowledge as I can give them to succeed in life.
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