Show Me the Money!!!

A few weeks ago, Emily (our 10-year-old) asked if she could start receiving an allowance. I was surprised because we have offered an allowance to her in the past and she has always declined it, saying that she didn't need anything, so she didn't have a need for a weekly allowance. 

For the most part, she has never been very materialistic. She takes care of what she has, and doesn't want for things she doesn't have. And, each summer, she drains her piggy bank to donate to the VBS mission. Then she starts collection random amounts of money for the next year. But, rarely does she break into her piggy bank to purchase something for herself.

I know this is a great time to teach money responsibility. Before we know it, she will have a job and a drivers license, and at that time she may be less open to hearing what ol' Mom and Dad have to teach!

So, we are considering the best way to tackle this new parenting concept. How much weekly allowance should she be given? Should it be dependent on completing weekly responsibilities? Should it just be freely given -- no strings attached?

Emily already has daily chores (with the exception of Sunday) that she faithfully completes. She is a great student, works hard without complaint. She practices piano without being asked. The place that doesn't quite meet my standards is keeping her room neat, but I am not sure my standards are realistic for the average 10-year-old.

Looking on the Dave Ramsey website for suggestions I found these video clips. I appreciate Dave Ramsey's expertise in the financial field so I found these clips helpful.

http://www.daveramsey.com/show/videos/should-kids-get-allowance-1 http://www.daveramsey.com/show/videos/should-kids-get-allowance-2

Dave suggests that children should be taught that there is a strong correlation between work and money. Instead of an "allowance," Dave suggests enacting a "commission" system. He does account for the viewpoint that chores should be done without compensation simply for being part of a family. I love his viewpoint on that topic.

It is unrealistic to assume that when a child becomes independent that a switch turns and they gain the desire to work for their money instead of getting money handed to them -- no strings attached. I love this quote contrasting two opposite work ethics that are present today: "How little can I do to get by in this life? What extra can I do to add value?"

Dave's daughter, Rachel Cruze, adds another great quote reinforcing that fine balance that we achieve to find. "Too many rules is legalistic, but too much grace is enabling." 

Great ideas to keep in mind. I am looking forward to sitting down with Matthew and working out our commission plans for our children.