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Sure P1! I started when he turned 5. I give him $1 for each year of life. I also have three envelopes where he can choose to allocate the cash:
1) spend on whatever you want
2) save for something special
3) save/invest — I will match 10% of his contribution to this one and pay him 20% interest.
If someone would give me a deal like #3 I’d take it. At any rate, he puts about 70% into savings right now but he does not spend much. I’m sure this will change over time and he’ll go through phases
Parenting is one of those third rail topics like race , politics and religion that I don’t wade too deeply into on places like this. I think the philosophical difference between OP and me is that they see work and money as separate paths to develop, where I am committed to making sure this last of my kids see them as linked. I get the notion of wanting them to want to appreciate work for works sake, but I’m concerned about entitlement risk if they are disaggregated. But I have my reasons and OP has theirs, so to each. My experience is informed by my cultural upbringing and my two older kids. OP has his own inputs. Good luck to us all.
I don’t think I’m in a position to banter. My method is totally unproven, and besides, the proof will be in the pudding. If you like, we can revisit this thread in 20 years to see whose kid has the higher net worth.
As I think about it, my boy has to sit and listen to his old man opine about money for 5 to 10 minutes per week. You could argue he’s underpaid...
I was kidding on the net work comment.
Listen, if you are trying to teach your kid about money, you’re winning in my book. Method doesn’t matter. The fact is too few people today understand personal finance and I’m a fan of any way people try to address the topic
Sorry you have to spend your sunday traveling.
At what age did you start giving the kids allowances? And how much, if you dont mind me asking?
Looking to teach mine financial responsibility
You just give him money? He doesn’t have to do anything to earn it? I give my kid money for cleaning her room, reading books, helping mommy, etc. She’s 8 and is already appreciating adding to her piggy bank. Been doing it since she was six. Pretty full now.
Awesome advice! My oldest is 4 so I'm making plans to start soon
P1, he has chores but they are not tied to his income. He needs to work to feel good about working. He needs to learn the value of money by leading the value of money. In life, he can choose to be wealthy by spending less but doing what he loves
Different philosophy, but I’ll never tell a man how to raise his kid. Also greatly informed by personal situation and upbringing, so obviously highly personal.
How old are you Partner?
I am 42
Was hoping for more banter between partner OP and partner 1
I am assuming partner 1 is gonna say higher net worth is not the measure of success . Please partner 1 chime in.
This was a good thread. Thanks all
Plenty of studies have suggested not to link chores and allowance. Chores are to be expected regardless of compensation. Allowance is to teach the value and importance of money management.