I never had an allowance when I was a kid. Chores were treated as pilgrimatic (is that even a word?) – you know, no work, no eat? Prior to 10 years old, if I needed to earn money Dad made a list of “extra” chores over and above the usual chores and assigned a value to each.

It can take a long damn time to earn money when a day of raking leaves only earns you $1.

When I was 11 we moved to New Hampshire and I wanted a 10-speed bike. I mowed lawns all summer, spent a little as I went, but managed to save up enough for a bike by labor day. Just in time for winter in NH.

So, when my wife and kids first started talking about allowances, I was not favorably inclined: “I put a roof over your head, food on the table, clothes on your back, and you have a roomful of toys. Um… NO!”

Eventually, I relented to following my father’s lead and drawing up a list of extra chores. Mind you, my kids have never been expected to do even a fraction of what we did at their age. So extra chores were things like ‘washing the dog’. They never lasted longer than two days. My master plan was intact.

A couple months ago my wife or I read about a family that paid allowances without specific lists of chores to accomplish (if it was another blogger, I apologize for not remembering where I read it), and the kids had to “pay their way”. If they wanted something, they paid for it. Family activities were exempted, but if they wanted a toy or gadget or clothing accessory, the kid had to save and pay.

Not so novel for a lot of you, I’m sure, but in our house it was. Bunch of little leech-beggars around these parts. My wife and her cohorts in crime, the Grandmas, helped the lil beggars develop a wicked Webkins habit.

So, what the hell, we decided to give it a try. “Great,” I thought, “Just what I need, another bill.”

But, it’s working. It’s saving us money in the process. Every time the begging starts, we can immediately ask “well, how much money do you have?” Cruel to do to a 6-year old? Don’t forget, she gets paid by us every week. We’re teaching her is budgeting and saving.

The 9-year old gets it. She’s a saver, but she isn’t cheap. She wanted a Flip video camera for her birthday, so she asked for Target gift cards and saved them all up and eventually managed to buy the Flip. Her allowance goes straight to the piggy bank, and she never begs. She responds immediately to any request to help around the house, whether it is unloading the dishwasher or climbing into the attic to look for Mom’s fall decorations. We haven’t tied the allowance to a specific activity, but she’s smart enough to understand how it’s all supposed to work.

A side benefit is that we’re seeing real savings. No longer are we weighing decisions about Webkins. They’re responsible for saving and buying everything  over and above the normal necessities. We still pay for movies and entertainment and educational products and services, and anything that involves the whole family, but if it is for themselves, they know they’re responsible for saving. Dad does not pay for Webkins anymore.

How do you handle the money situations with your kids?