kfeusse Posted January 17, 2011 Share Posted January 17, 2011 For those of you who have chores attatched to money earned...do you have your children put money in a savings account and if so, how much (percentage of earnings?)...and what is the savings ear marked for...future spending on a big ticket item they might want someday...or college fund...or what? My kids are 10, 8 and 6...I can't imgaine making them save for college at the age of 6...but maybe I should...what do you think?? Quote Link to comment Share on other sites More sharing options...
Jean in Newcastle Posted January 17, 2011 Share Posted January 17, 2011 We meet all of our children's needs and quite a bit of their wants. So we put most of their money (from odd jobs, birthdays etc.) into their savings. If either of the kids wants a special toy then we talk about saving up for it. We discuss how long it will take to save the money (this often will make them rethink it right there), and if it is something lasting. Then we make a chart that shows their goal. Whenever the kids save up for something special, they also have to save up 1/2 that amount for general savings. So if they are saving $20 to go for legos, they will have another savings goal of $10 to their "general fund". Quote Link to comment Share on other sites More sharing options...
Truscifi Posted January 17, 2011 Share Posted January 17, 2011 I have a college savings account for ds, but I put money into it. I let him use his money as he wants to. However, he knows what I will pay for and what I won't, so if he wants something (like another Lego set or the occasional Happy Meal) he has to save for it himself. I don't make him put money into a savings account just for saving, but he has started saving on his own "just in case I see something I like". When he gets a bit older and is getting more than $2 a week, he will have a savings account with an attached debit card to use the same way he uses his little money pouch now. Quote Link to comment Share on other sites More sharing options...
AK_Mom4 Posted January 17, 2011 Share Posted January 17, 2011 Some friends of ours told me about their kids plan - 1/3 to savings, 1/3 to donate (church or charity), 1/3 to spend. They pay their kids for chores and the kids get other money from babysitting, odd jobs, birthdays. The savings can't be touched by the kids - if they want to buy something, it comes out of the "spend" pile. This has worked really well - the boy has bought himself a refurbished Ipod by saving his "spend" $$, the girl has a rabbit-growing operation that she now is making $$ from. I wish I had heard about this when our kids were little. I just have always put their bday $$ into their savings accounts. Our kids have pooled their Christmas $$ the last few years to buy one really good thing (a Wii, Rockband guitars, etc). Quote Link to comment Share on other sites More sharing options...
Mommyof4ks Posted January 17, 2011 Share Posted January 17, 2011 We have the kids save 10%, donate 10% and then they can use the rest to buy stuff they want. They are 5, 7, and 10. Quote Link to comment Share on other sites More sharing options...
nono Posted January 17, 2011 Share Posted January 17, 2011 My children's savings accounts started as soon as they came to us. A little money from each paycheck gets directed to their accounts, so they can use it for college or to start their adult lives. We don't pay for chores at this point, because my kids volunteer to do them for free! (Really, it shocks me.) I'll have to revisit that as they get older, but I imagine we'll stipulate a portion (probably no more than 1/4) goes into savings. So, to answer your question, no I don't think 6 is too young! I started both when my kids were 1 yr old. :) Quote Link to comment Share on other sites More sharing options...
Truscifi Posted January 17, 2011 Share Posted January 17, 2011 May I ask what you require your kids to save for? Are they to leave the "save" money alone until a certain age? Quote Link to comment Share on other sites More sharing options...
nono Posted January 17, 2011 Share Posted January 17, 2011 May I ask what you require your kids to save for? Are they to leave the "save" money alone until a certain age? I think you were asking me (threaded mode and my brain don't get along, so excuse me if you weren't asking me!) They(we at the moment) are saving for their savings! For their cushion, their future, and their retirement! If they are going to need $50,000 to go to college, or for a home, it is much easier to start earlier and put less money away each month, than trying to do it in fewer years and put more money away, when the children are older and they are more expensive. ;) And, to my way of thinking, what better way to demonstrate this than to live it? It's one thing to talk about saving for a rainy day. It's another thing to show by doing it. And, each of us has an umbrella in this house. :) Quote Link to comment Share on other sites More sharing options...
Jean in Newcastle Posted January 17, 2011 Share Posted January 17, 2011 I think you were asking me (threaded mode and my brain don't get along, so excuse me if you weren't asking me!) They(we at the moment) are saving for their savings! For their cushion, their future, and their retirement! If they are going to need $50,000 to go to college, or for a home, it is much easier to start earlier and put less money away each month, than trying to do it in fewer years and put more money away, when the children are older and they are more expensive. ;) And, to my way of thinking, what better way to demonstrate this than to live it? It's one thing to talk about saving for a rainy day. It's another thing to show by doing it. And, each of us has an umbrella in this house. :) Exactly. Quote Link to comment Share on other sites More sharing options...
DawnM Posted January 17, 2011 Share Posted January 17, 2011 We don't really have them put it in. We give them a set amount for allowance and then put some away in savings each month that they are not aware of! :D Dawn Quote Link to comment Share on other sites More sharing options...
Mejane Posted January 17, 2011 Share Posted January 17, 2011 We expect our kids to pay half the cost of their first car (extra incentive to drive safe.) They've been saving gift and baby/pet-sitting money for years, and each has about $5,000 now. We've always had them pay half of big-ticket items like their computers so they have a financial interest in taking good care of them. Quote Link to comment Share on other sites More sharing options...
Truscifi Posted January 17, 2011 Share Posted January 17, 2011 We expect our kids to pay half the cost of their first car (extra incentive to drive safe.) They've been saving gift and baby/pet-sitting money for years, and each has about $5,000 now. We've always had them pay half of big-ticket items like their computers so they have a financial interest in taking good care of them. When did you have them start saving for this? And how did you introduce the idea to them? I think it is a good idea, but I can't see telling my 7 yo he has to give up part of the $2 weekly allowance he works for (by doing extra chores above and beyond what are expected of him as a member of the household) to save for a car he won't need for at least 9 more years. Quote Link to comment Share on other sites More sharing options...
nono Posted January 17, 2011 Share Posted January 17, 2011 When did you have them start saving for this? And how did you introduce the idea to them? I think it is a good idea, but I can't see telling my 7 yo he has to give up part of the $2 weekly allowance he works for (by doing extra chores above and beyond what are expected of him as a member of the household) to save for a car he won't need for at least 9 more years. In your case, I'd give him a $2 raise, but put that away for him. "Son, I have some good news and some bad news..." :) Quote Link to comment Share on other sites More sharing options...
Old Dominion Heather Posted January 17, 2011 Share Posted January 17, 2011 Mine get an allowance for doing their share of the household work and they tithe/donate 10%, but after that it is theirs. They will save up if there is something that they really want, but I want them to have the experience of NOT having any money left because they blew it all on chewing gum... something that happened to my middle guy. Dh never had money to spend when he was a kid and made some terrible spending decisions as a young adult. I always had money and opened my first checking account when I was 13. I used my savings to pay for school, buy half a car, and bail out dh when we got married. Dh now says he wants to make sure the boys have plenty of experience with money so that they won't make the same mistakes he did as a young adult. So, yes, they save, but we don't REQUIRE them to save. Quote Link to comment Share on other sites More sharing options...
mcconnellboys Posted January 18, 2011 Share Posted January 18, 2011 When they become a teen and get a job, they can keep half to spend (but not on things we disapprove of or don't allow in our home, of course) and they put half in their account. The money is for use while in college for books, living expenses, travel expenses, gas, snacks, clothes, etc. My parents opened my bank account when I was born and saved from that time for me for college. We did the same with our children. They did not have their primary money for college in a savings account, as interest rates have been so low for their lifetimes. Theirs was in investment accounts. We move it as we need to in order to pay expenses and keep a small amount in a checking account for my older son now. Quote Link to comment Share on other sites More sharing options...
elise1mds Posted January 18, 2011 Share Posted January 18, 2011 (edited) My kids start the month with a certain amount of cash. They can lose or earn cash as the month goes on. Whatever is left at the end of the month is 'theirs.' I require 50% to be put into savings and 50% can be for spending. The 50% that goes into savings will be part of their college fund or can be used on big-ticket items as they get older, i.e. trips with various groups, furniture, car, etc. My mother did this with me, and it worked beautifully. We're going to make their annual big deposit this week (all the change we've saved over the year plus their monthly savings), and the kids are INCREDIBLY excited to see how much they have in their savings accounts. They love watching that number go up. The 50% they can have for spending can be spent on anything. DD is turning out to be my saver; DS is my spender, but he's trying to cut back so he can buy himself an iPod Touch. It's been a tough proposition for him. ETA I should say that even though I said they have 'cash' each month, it's really a sort of Monopoly money that I created for the family that has our last name on it. Edited January 18, 2011 by elise1mds Quote Link to comment Share on other sites More sharing options...
Mejane Posted January 18, 2011 Share Posted January 18, 2011 When did you have them start saving for this? And how did you introduce the idea to them? I think it is a good idea, but I can't see telling my 7 yo he has to give up part of the $2 weekly allowance he works for (by doing extra chores above and beyond what are expected of him as a member of the household) to save for a car he won't need for at least 9 more years. We started putting their birthday and Christmas, etc. money away when they were born. When they got old enough to know what money is, we explained about saving for things they really wanted. It started out being toys or movies, but it evolved into big ticket items as they got older. A side benefit was that every now and then they'd buy something and realize they didn't enjoy it as much as they thought, so they started being more discerning about spending. Then, as they saw their money growing, they got excited. When we told them we'd pay half for their cars, they had incentive to let it ride. :001_smile: Quote Link to comment Share on other sites More sharing options...
MorganClassicalPrep Posted January 18, 2011 Share Posted January 18, 2011 Our system is complicated to describe, but easily implemented. DD has 5 chores a week. (Feed the cat 2 times a day, brush her teeth 2 times a day, clear her dishes after mealtime, make sure toys are all picked up at bedtime, go to bed without whining). I have a chart for checking these items. For each chore she completes the entire week, she gets a dollar. If I have to speak to her about whining, or she throws a temper tantrum, I take away 25 cents. At the end of the week, whatever she's earned gets paid out in the following manner: First, .50 to donate. Once she's saved up a couple dollars, she can pick what to donate it to. Right now she wants to donate to the zoo. (10%) Second, $2 for long term savings. This is to go towards college. (40%) Third, $1.50 for short term savings. This can be used to save up for a big ticket item, which is picked with my approval. She is currently saving for a Toy Story bike, but since that is what I had decided to buy her for her birthday, she'll be changing this in a week. (30%) and the last fund she contributes to is spending money. If all goes well and she earns all $5.00, it will be a dollar a week that she can spend how ever she wants. (20%) Birthday money, Christmas money, etc. will be her choice on what she wants to do with it. Money earned by doing extra chores around the house is subject to the 10,20,30,40 percent division. Wow, that's complicated! DD understands it though, and it works well for us. :tongue_smilie: Quote Link to comment Share on other sites More sharing options...
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