Keeping track of allowance

I have already showed you the itemized grocery store list that my husband created. This is another one of his creations. A way to keep track of allowance. And he makes it so pretty.

Bank Statement

(click on photo to enlarge for ease of reading)

Some people have expressed a desire to see what the bank statements look like that we give our children.

This is a photo of one belonging to my 10 year old son.

Everything is itemized the way that it would be in a real bank statement. He received birthday money in addition to his allowance, and he made no withdrawals from his savings to buy things.

Withdrawals would be listed with exact expenditure and the date.

Additionally, we really do have a bank account at an actual bank where their money is collectively saved. Every week my husband transfers their allowances into the single account ($26.50 each week), adds in any additional money earned through extra chores or birthday money, withdraws expenditures.

This system of payment has been the best for us. No cash to lose. No trying to remember how much money each child is owed. Encouraging them to save and watch their bank accounts grow.


(cross-posted at Handipoints)

12 Responses to “Keeping track of allowance”

  1. Wendy Says:

    So, do the kids only see cash when they ask to purchase something?

    When you say a single account, is that one bank account for all the children or one for each?

    Do you require them to save a portion of their allowance? If so, how much and does it go into another account?

    When did you start giving your children an allowance?

    Is their allowance based only on chores or do they just get a set amount every week and chores are extra?

    I ask, because my daughter just turned 5 yrs old and I have been thinking of giving her an allowance. I have no idea how much, what for or how. I cant have a 5 yr old walking around with a $20 in her pocket ready to buy all the candy in the world.

    We have a responsibilty chart and I have encouraged a reward if she fills it one week, but she hasnt so we have gotten to that point.

    Thanks

  2. Lisa Says:

    Thanks for sharing this great method. I’d be interested in hearing your responses to Wendy’s questions.

    We have 5 yo twins and they do house hold chores, but dh and I disagree about how to implement allowance….

  3. The Lazy Organizer Says:

    We do the same thing but the kids balance their own check registers. When they want to pay for something they record it in their registers and I pay for it with my own money.

    You can read about what we do here.

  4. The Lazy Organizer Says:

    Opps, that link didn’t work.

    http://laragallagher.com/blog/2006/10/debt-proof-your-kids.html

  5. Rebecca Says:

    My kids are too young for an allowance but my younger brother who is almost 13 gets a weekly allowance. My parents are teaching him to keep track of his money, he tithes 10%, puts 10% into savings and is free to do what he wants {within reason} with the rest. So far he’s got a couple hundred dollars so I think he’s been saving most of it, he’s got a big ticket item in mind. When my kids get an allowance I definitely want to work with them on the importance of budgeting/saving & money management. I don’t think I knew enough when I got out on my own and it bit me you know where a few times.

  6. Diane Pierce Says:

    HI. I can’t tell you how much I enjoy your blog(s). I thought the “bank statement” was great! I was wondering when you started giving your kids an allowance. My daughter will be three in September and I kknow that’s a little too young but is 5 a good time to start? How did you decide how much was sufficient? And do they have things to do to earn it? I see you listed as $26.50 deposited into the account. I was just curious if this was divided between all your kids or just maybe the oldest?
    Thanks for any help/suggestions. Keep on bloggin! :-)

  7. Kerry Says:

    I really like the simplicity of this idea; much better than the separate bank books we have been keeping.

    Judging from the large allowance deposit I’m guessing that the Bank of Dad statements come out once a month…is that accurate?

    I would like to know more about how your family handles allowances, for instance, what things are you willing to pay for and what things do the children pay for out of their allowances?

  8. JayMonster Says:

    Now perhaps it is easier since we have only one, but we have a 3 ring binder that we put all her various account statements into, and TheWife has created a similar Single Sheet “Statement” (in Excel) that gives a “summary at a glance.” This includes besides her “regular” savings, her “long term” savings (yes we have two accounts), her 529 account (for college), and so on.

    We do however give her part of her allowance each week in cash. She current gets $7 per week ($1 per year). Of that, $2 goes into her “piggy bank” for her “instant gratification” desires (lollipops, iced tea, carnival games, etc), $2.50 goes to her “Save-up” account (for toys or bigger expenses she wishes to save for), and the other $2.50 (plus birthday money, etc) which goes to her “long Term” savings accounts for future needs (i.e. college, car, therapy, etc).

    We do not tie her allowance to the chores she must do, because there is no “option” to not do them (thus avoiding the conflict of fine, keep your money I am not doing it). But she can “earn” extra by doing other “above and beyond” chores and tasks.

  9. Jodi Says:

    $26.50/week seems like tons of money for a child. What comes out of it? Lunch money? Clothing?

  10. Jazz Says:

    This is fantastic. I’m just afraid that my now 4.5 yr old will be keeping really close tabs on his cash and he’ll drive me crazy.

  11. Davy Says:

    Have you ever thought of storing the money in a high-interest savings account? (ING Direct, for example). That way they could learn about compound interest and would have even more incentive to save instead of spend. Seeing how much money their money is earning every month would be pretty cool, I would think.

    I really like the fact that you are doing this with your kids. It seems like lots of parents don’t bother to teach their children about finances these days. The idea of a personalized bank statement is genius.

  12. beach blog Says:

    beach blog…

    Sounds good … but nevertheless, I am not totally sure I agree with the idea….

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