Our Kids Commission/Allowance

With the beginning of the school year, we decided that our boys (my girl is too young at this point) were old enough to start learning some monetary responsibility. We looked into the allowance thing and ended up going with a commission plan. In other words, we aren't allowing or giving them anything. Just like us, they have to earn their money.

So, we put together a list of 3 basic daily chores and two additional weekly chores. After finishing their "job" we check it and allow them to put a check on their sheet. Every Saturday night, they add up their checks and get paid accordingly up to $5 per week. Of that $5, we are teaching them to give 10%, save 10%, and allocate the rest according to what they think (not just "spend").

We are discussing with them the ideas of delayed gratification, impulse buying, sense of accomplishment, etc. When talking with them about a long-term savings goal, both boys agreed that they wanted to save for a Nintendo DS and pool their money for it. Shortly after the discussion, you could tell that Cooper's (the 6 year old) little brain is spinning. Then he blurts out "hey, I just want to go scrambling in Vegas. That's how [my gr-mother] got $100! That would buy me a Nintendo DS." The child's mind is truly amazing -- forget saving up for it, let's just go to Vegas!