Perhaps I've over-thought it. I did a lot of research (Allowance for Kids ~ Part 1)
on how to even start to establish allowance for our kids. How much, what lessons to teach, how can they earn extra money, what do they do when I pay them, when do I pay
them, with cash or a ledger, etc. etc.
Tracking the Money
I signed up for a FREE online account using Allowance Manager
. I liked these four helpful features that are on the site:
Set an automatic weekly allowance
Check how much allowance they have anytime, anywhere
Simply edit debits / transactions when you buy stuff for your kids
Show your kids how to check their balance on their own
I'm adding one more - I like that I can add or debit based on behaviour or extra chores the kids do, donation or purchases.
Hubby and I decided that we would pay each child up to 30 cents per day (10 cents per routine that they complete). You can find our morning, after school and evening routines here
I thought since we are all new at this (parents and children alike) we should set specifics so we are all on the same page. This will be posted with the Chore Charts, Routines, and Extra Chores.
For now we aren't going to divide their allowance into savings, invest, donations, spending. The amount is so little we just want to get them to learn to save up for what they want and that we are not buying every little think the want. Basically we are trying to teach them want versus needs. They are 5 and 7. We'll get more detailed and diverse as we become more experienced with the allowance situation in general.
I'm keeping things simple. Using these custom chore charts, we will have three items only - Morning, After School and Bedtime Routine. After each one is complete and without 3 strikes, the children will add a sticker to their chart. Each sticker will represent 10 cents.
If the children are saving up for something specific and $2.10 per week seems too much to wait for, they will be given the opportunity to earn extra money by choosing extra chores. Here is a list that I've come up with so far. They pay out ranging from 5 to 25 cents based on the chore. I would have put the amounts higher but I had to keep them in line with their 30 cent daily allowance or it wouldn't be consistent (the routines have up to 6 items on them).
Clean Back and Front Door Windows
Put Laundry Away
Put Away Toys from Main Floor
Vacuum Main Floor
Help Unload Dishwasher
Wipe Kitchen Cupboards
Tidy Bedroom & Under Bed
Donate 3 toys you don’t play with