How do you teach an 11 yr old how to manage money thru an allowance?

Question

How do you teach an 11 yr old how to manage money thru an allowance?

Answer 1

make them pay for extra snacks

Answer 2

My kids have a Wal-Mart gift card that they can load with their allowances. The idea is to get them to manage their money first before they are entrusted with cash. Also, there is less tempation to spend when the money is on the card (kind of an out of sight out of mind thing). It sounds weird but it works. I have found that when they have cash, they can't wait to spend, but with the card they think more first. Also, they were given the cards with the understanding that if they were unsure of what to get, they wouldn't get anything at all. Also, they understand the principle of saving for things they really want. I chose the Wal Mart route with them because it's relatable at their age but the principles behind them are those that we apply on a daily basis as adults.

Answer 3

Get a MoonJar!

Then talk about how much of his allowance should go into each of the three compartments - Spend, Save, Share.

They include a book with ideas for families to talk about money, too.

You can also give your child an extra bankbook to tally up his savings, and when you go shopping, talk about whether he has enough in his MoonJar for this or that.  I also like to translate things my son wants into weeks of allowance - that's one week's worth; that's five weeks worth.