All kids seem to know that money is something you get from the cash machine. If you lose or break something, you just go buy another, and if you need more money you get it from the machine, right?
So I've decided it's time to start giving my 5-year-old some spending money. She already has a piggy bank, and occasionally we take it to the bank to put into her account. Now, I've also given her two jars, labelled 'Spend' and 'Donate'. The 'Spend' money, she can take with her when we go out, and she can buy things for herself. The 'Donate' money, she can choose which charity to give it to. The piggy bank will be for saving.
(I gave her $3, today, and after swapping jars for a while, she finally decided to put $2.75 into the 'Donate' jar, and 25 cents into the 'spend' jar. She said "Some people don't have enough money to buy food, and I already have lots of toys, so it's good to give most of it away!")
Anyway, I'd like some advice about how to help her learn about money:
- How much spending money do you think is appropriate for a 5 year old?
- Should I let her have free-rein with the 'spend' jar, or should I stop her if she wants to spend it on overpriced junk?
- Of course, I want her to be generous, but not just give her money away willy-nilly, and there needs to be some balance. Any suggestions on this?
Any ideas on how to help her to start learning good financial skills would be helpful, please. I'm new to the whole 'allowance' business.
So I've decided it's time to start giving my 5-year-old some spending money. She already has a piggy bank, and occasionally we take it to the bank to put into her account. Now, I've also given her two jars, labelled 'Spend' and 'Donate'. The 'Spend' money, she can take with her when we go out, and she can buy things for herself. The 'Donate' money, she can choose which charity to give it to. The piggy bank will be for saving.
(I gave her $3, today, and after swapping jars for a while, she finally decided to put $2.75 into the 'Donate' jar, and 25 cents into the 'spend' jar. She said "Some people don't have enough money to buy food, and I already have lots of toys, so it's good to give most of it away!")
Anyway, I'd like some advice about how to help her learn about money:
- How much spending money do you think is appropriate for a 5 year old?
- Should I let her have free-rein with the 'spend' jar, or should I stop her if she wants to spend it on overpriced junk?
- Of course, I want her to be generous, but not just give her money away willy-nilly, and there needs to be some balance. Any suggestions on this?
Any ideas on how to help her to start learning good financial skills would be helpful, please. I'm new to the whole 'allowance' business.