Kids and Allowance + {Flash Giveaway/closed}


How do you want your kids to learn to manage money?  Do you want them to wait to make any mistakes until they are older, making decisions for them to avoid any mishaps?  Or perhaps you would like them to make some mistakes with their money when the stakes are not too high?

I share today my thoughts on allowance, what I feel works, what we’ve done in our home in different seasons and I hope you will get more information to help you make the right decision regarding allowance for your family.

Some questions to keep in mind while listening and determining your plan of action:

1) What am I trying to teach my child by giving allowance?
2) Do I think chores need to be tied into the allowance or is that separate?
3) What is a reasonable amount for their age? When do I start?
4) Will this make your life more complicated or less complicated?

Listen to internet radio with Susan Heid on Blog Talk Radio

Crystal Pain of Money Saving Mom has done it again!  I know, she is one busy lady, just releasing her “21 Days to a More Disciplined Life” only a few weeks ago – she now has released a Christmas eBook too.  I’ve had to joy of looking it over and reading a few of the topics, like – planning your budget, decorating on a dime, creative gifts, teaching children to be givers and of course, my favorite – giving yourself GRACE!  Get yours for only $.99 for 3 days only!   You can enter to win your own copy for FREE today – this is a FLASH giveaway – ending at midnight 11/13/12.  Leave a comment below and be entered to win!
Winner:  Jodi




What tips do you have for navigating allowance?

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Help Susan Help These Children!
  • Shelley C.

    I love Crystal’s book. I can’t wait to read this one too. Thanks

  • Nancy

    Really enjoyed your blog talk today. This was very helpful. I am new here so sorry for my previous comment. Thanks for the tips!

  • Kristin

    I’d love to win a copy of this book. I am currently planning for our Christmas celebrations and I know that I need a good reminder about simplicity! Thanks!

  • Patricia Pacheco

    I love crystal paines website blog, facebook, ebooks, I would love to win this , due to a job loss every penny is starting to count. I hope and wish to win this, thank you for your time.

  • Mindy

    I just found The Confident Mom on Facebook yesterday and plan on reading as much as I can ASAP. Being a mom of three boys (6,4 and 8 weeks) and running 2 businesses, I need so much help organizing my days! I like what I see so far 🙂

  • Angela McMurry

    I’m enjoying reading 21 days to a more disciplined life right now– I’d love to receive A Simple Christmas to start on soon!

  • Jodie

    I’m just reading the last one of crystal’s books, would love to win the new one!

    Interesting listening about pocket money as we’re about to start giving it to our 3-year old 🙂 I have been thinking of linking it to jobs around the house (tidying away toys, putting clothes in laundry basket etc) as a way of introducing the concept of employment, that you have to work to earn money which you then have some choice over how it’s spent. I see where you’re coming from with having the expectation that some things you should just do for the family though – it’s an interesting topic!

  • Laura

    I am so excited to read this!

  • A Simple Christmas?! Yes please!!

  • There is no right or wrong answer for sure – just what fits good for your family. 🙂

  • carol

    I too would count it a blessing to win this e-book as we are trying to teach our sons importance of budgeting currently.

  • Amy

    So fun, love to win this flash giveaway. Be fun to read over the holidays with
    a nice cup of tea.

  • Lana

    I would LOVE to WIN a copy of Crystal’s new book, A Simple Christmas. – Thanks for a chance to win!

  • robyn

    Hi Susan-
    Enjoyed your video today and just now your radio blog on allowance! I liked your hierarchy of money and age and I have always thought kids should have responsibility to be expected to buy certain items. Even as a tween/teenager I think it’s reasonable to expect them to buy their own clothes if they go beyind what I would think reasonable to purchase-maybe that name brand sweater/jeans etc..But I am wondering if you do have some ideas/list of what kids of things kids a different ages should be expected to use his/her allowance for? That would be super helpful!

  • We’ve basically had the expectation that if it was a family event, obviously we take care of things, but if it is an individual choice for an activity – or they want something outside the budgeted amount, they can pay with their own money. For example: we are gong for ice cream and we are buying one scoop cones. But my 7 year old really wants a two scoop cone. I don’t have a problem with him having two scoops, but I am not paying for it. If he chooses to have two scoops, that is fine, but he will be paying the difference. We have this option quite a bit, especially now with older boys. We are buying 2 hamburgers and a drink while out, they say they want a shake – if I don’t have a problem with it, then they can get the shake, but pay the difference wither their money. Or if we are out and they want something that the family is not providing (maybe they didn’t eat breakfast and are hungry because we are out doing errands, I am not buying them something, but they can buy it with their own money.) Funny, a lot of food things, huh? LOL For smaller kids, it wold be more on getting small toys or tokens at the dollar store or something, or saving for vacation money – I think next week I will talk a bit more on how to let your kids manage their money and what it helps them learn. I didn’t have time to go into that much, also talk about your clothes budget idea as well.

  • Barbara

    Really enjoyed the blog. I seem to find the same problems, mostly that my kids assume everything can be put on credit (they dont realize the concept of a monthly bill that has to be paid), and that money comes from a magic machine at the bank.

    It is a hard balance to decide to let them make their own mistakes, or having me guide them every step of the way. I find that teaching them early on about finances is the best knowledge and defense. I try to instill the concepts of saving, budgeting and donating, while still allowing them to make some mistakes and learn from them.

    I came across an e-wallet site that teaches my kids these financial literacy tools and also open up communication channels.
    , check it out and see if it works for you as well

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