When is the right time to introduce an allowance to children? This question hadn’t crossed my mind until recently. I had always thought it would align with report card time or when we began putting chore charts on the fridge. I assumed an allowance was merely a reward for good behavior, where my kids would have to earn their money. Initially, I was only curious about the going rate for chores in 2017.
Then, a friend shared an article from Slate that completely shifted my perspective on allowances. The experts there suggested that the best time to start giving an allowance is when kids begin to inquire about money, as research shows that preschoolers are already differentiating between wants and needs. This revelation struck a chord with me. Money has been a source of discomfort in my life; I wasn’t taught how to discuss or manage it. Early in my career, I struggled to negotiate my salary, resulting in a significant disadvantage. I didn’t want my children to feel the same vulnerability. But how could I impart the value of money to them?
My husband and I decided to take proactive steps toward teaching our kids financial literacy. We dove into research on healthy money habits. Living paycheck to paycheck, the idea of saving felt nearly impossible, yet we were determined to change that narrative for our children. We soon realized that we had a lot to learn about personal finance ourselves.
Following the advice from the Slate article, we set up three jars for each child, labeling them “Save,” “Donate,” and “Spend.” Every Friday, which they affectionately call payday, we distribute a stack of one-dollar bills, giving each child an amount that corresponds to their age. This means our older child receives a larger allowance than the younger one.
The beauty of the jar system lies in its reflection of the values we want to instill. The spending jar contains the least money, emphasizing that we prioritize spending on needs over wants. The savings jar teaches patience, as children learn to save for something worthwhile, while the donation jar encourages the idea that money can be a tool for making a positive impact on the lives of others.
Here’s the catch: we do not link allowance to performance or behavior. This was initially challenging for me. The allowance must be given every Friday, regardless of circumstances. According to the experts at Slate, “Allowance is instructional, and money is a tool for learning. Just as we don’t take away books or art supplies for incomplete chores, we shouldn’t withhold money either.” This insight helped us understand that breaking the cycle of poor financial habits starts by teaching our kids that money is simply a tool.
As we implemented these changes, we were amazed at how our children began to engage with money. Just last Saturday, we allowed them to withdraw $10 from their savings jars to purchase new toys. They spent over an hour deliberating between a Zorro pistol set with masks and badges or a vibrant art set with neon playdough. They recognized the effort it took to save their money and approached their spending with care. This was a delightful and unexpected shift in their behavior.
Ultimately, they made their choices and, upon returning home, took great care not to misplace or damage their new toys. As a parent, I felt immense pride watching my children make informed financial decisions and value their belongings. I’m optimistic that we are on the right path toward breaking the cycle of financial insecurity.
For those on a similar journey, consider exploring additional resources like this helpful blog post about navigating financial discussions in the context of family planning. Also, check out Postpartum Helpers as an authoritative source on related topics. Lastly, March of Dimes provides excellent information for those interested in pregnancy and home insemination.
Summary:
This article discusses a mother’s journey to break the cycle of financial ignorance by teaching her children about money management through an allowance system. Emphasizing the importance of financial literacy, the mother shares her experiences in implementing a three-jar system to instill values around saving, spending, and donating. Through these lessons, she has seen positive changes in her children’s attitudes toward money.