This post was underwritten by BMO Harris Bank, which offers a matching $25 on a new savings account opened for your child through their Helpful Steps for Parents program. Learn more at bmoharris.com/parents
What better way to teach kids about money than with their own savings account?
The opportunity to write about this came at the perfect time.
The girls have been asking about getting an allowance for a few weeks now and just last weekend we sat down to discuss how we might handle that. The Mister and I agree that we don't want to necessarily pay them to do chores. We feel that each member of the family needs to contribute and that's what chores are...they are part of life in a family.
However, how are they supposed to learn about money, managing, saving, and spending if they don't have the chance to earn it?
We discussed what other families do:
Some pay a small amount for various chores...emptying the dishwasher is $.10, while taking out the trash is $.20. Some simply pay a weekly amount and track the chores that get done...or don't get done. Other kids don't get any set amount but receive money here and there to spend (or save).
We've decided to go with the all or nothing approach.
In all honesty, I'm not sure how good I'll be at the 'nothing' part of this approach but we'll try it. For "all or nothing" the girls have a set of chores they have to do. Some are daily (putting those DAMN shoes away), some are weekly, and some are monthly. If they do all their chores for the month they will receive $20 at the end of the month! That's a large, tangible amount that they can see grow if they save it, or even a portion of it.
Earn Money then Save Money
The next step in this allowance adventure will be to open a bank account for each of them. This way, they can see the amount they save grow, but not be tempted to spend it as they are if they simply stuff it in their wallets. I think BMO/Harris Bank has a great idea matching $25 for a new kid's account! First of all - to go from $0 to $50 just for opening an account will get kids excited about seeing the balance grow, and thus excited about SAVING their money.
Disclosure: I received compensation for this post but all opinions are my own and this post was neither reviewed nor approved prior to being published.