Too much too soon for kids?

[sv2007]

You're kidding, right? What 10 year old needs 40$ a month? I'm not giving out 80$ a month between my two kids. Ten dollars a month to kids who currently get nothing(outside birthdays and christmas) is plenty to teach them how to handle money. In fact, I'm not sure I want to give out more than 20$ a month together. I guess if I had a lot more disposable income, 40$ wouldn't feel like so much money to me.

I agree with you. But I also don't think you should give $40 even if you have a ton of disposable income if you don't agree with the amount, i.e. the allowance for a 9, 10 yr old shouldn't be based on how much money you make.

I thought about switching my kid from a star system to a $ system. However, after thinking, I decided against it. There just aren't that many things he wants that cost money; and switching to a cash system means we may lose control when other people give him cash as gifts.

[frugalNH]

My younger 2 are 10 and 8. Some chores they just do as they are members of the household, some they get paid for and can opt to do or not. We keep a running chart on the fridge and they get paid once a week. They each have 3 envelopes, save (for a larger purchase or goal), spend (blow money for little trinkets or candy when we hit the store), and give. They also started an envelope for car savings to buy one when they're teens. Each week they must put something in each of the save, spend, give envelopes. How much is up to them, but something in each every payday, even if it's just a quarter. Tooth fairy, Christmas and birthday money is theirs to divvy up however they please. They typically earn $2-5 each a week. This is plenty for us and them, $10 or $15 each a week would be way too much. I have no plans to introduce debit cards until they're 14 or so. I think they're better handling actual cash for now, but of course, each child is different. For now, they need to learn how to earn and handle money, and paid chores get it done.