Comment by jack-r-abbit

We do something like that for our kids. Each has a set of age appropriate chores they must perform each week to get their "allowance." If they don't do all those chores they get a prorated amount that week. We also deduct from it if they do stuff to get into trouble. Then on payday, each is required to put a certain amount into each of three bins: Spend, Save & Share. The remainder they can divide between those bins how ever they see fit. Spend is for all the random crap they want to buy (stuffed animals, candy, Jamba Juice, etc). Save is for larger, future items and we must approve it. Share is used for charity type stuff (like buying Christmas presents for strangers, etc.) We do make them pay for a portion of their school clothes and stuff like toothpaste to let them see what it is like to not have any spending money after they buy things they need. It has really helped them understand that maybe they don't need another stuff animal if that means they can't buy something else. I think kids lack the perspective of what it takes to earn money. A lot of times (for more expensive requests) we break it down for them by how many weeks of doing ALL their chores would it take to get enough money for it. Suddenly things don't seem as important to them if they realize that it might take 3 or 4 months of not buying anything before they could get it.