Thursday, October 2, 2008

Money Matters

No, this post isn't about the economy, although I think I'm just worried about it as everyone else even if I don't quite know what is going on. Despite the fact that I am certified to teach economics to high schoolers, I only had two economics classes at the local community college's summer school session. Isn't that scary?

Anyway, back to topic. Ryan and I have been toying with the idea of giving Sydney an allowance to help her learn money management. She was salivating over the latest American Girl catalogue and just had to show us all of the teeny tiny outfits she wanted for her doll. As she flipped through the pages making her desires known, Ryan added up the cost of all that she wanted: a whopping $245. We had her pull out her piggy bank and count out it's contents: $12.46. I showed her the prices of the things she wanted and we determined that all she could afford was a pair of tights for her doll. She began to cry.

We told her that she could start saving her money so that she could buy what she wanted for her doll, but she accumulates money so slowly (birthdays and holidays are few and far between), it would take her five years to build up enough to buy anything substantial. So we thought about giving her an allowance, but we're not quite sure how to go about it.

I didn't get an allowance. I was expected to do my regular chores without payment, but if I wanted to buy something I could do extra chores and earn some money. Even without a regular allowance, I learned the value of a dollar. This is certainly an option, but I wanted to hear from those of you who had allowances.

So, I guess my questions for you guys are:
1. Did you get an allowance when you were growing up?
2. How much did you get?
3. Did you have to do chores to get it?
4. Did you actually learn the value of money by getting an allowance?
5. Did you have to use your allowance to buy clothes and such or was it just "fun" money?
6. Did your parents make you budget your allowance (10% to savings, 10% to church, etc.)?

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