Just figure out what you would spend and give them that same amount to manage on their own.
Does allowance need to be paid monthly?
I would suggest paying allowance on the same schedule you normally get paid from your job. Every two weeks, Monthly, The 1st and the 15th, whatever works best for your budget.
What if I don’t have the money for allowance?
Your child must be able to count on you to provide the promised allowance. Do some planning to make sure you can make this work in your budget. Remember, you are already spending this money on your child.
How do I get my kid started?
It’s easy, 3 steps.
Figure out what you spent on your kid the 90 days and use the Planning Spreadsheet at Tools – First Habits Win to build their plan.
Explain the system to your child and what they will be responsible for.
Take your child to the bank and open a joint checking and savings account, deposit their allowance to open the account.
Bonus: Download Cabbage to have your child track their saving, charity, and spending.
What if they overdraw the account?
Good! Better to learn this lesson now then later. It’s not a failure, it’s a learning opportunity.
Can I use Cabbage to track my stuff?
Absolutely, kids want to follow their parents’ lead.
My ex has joint custody, do I need to tell him/her about this?
Yes, it’s best to have all relatives and close friends on the same page. They may be asked for advice.
My sister thinks my son/daughter is too young for this. What should I do?
Friends and relatives will have their own opinions but it’s up to you to decide what’s best for your child. Lend them your copy of First Habit Win so they understand it better.
My parents want to give my son/daughter extra money, is that okay?
Let them spoil their grandchild a little, just don’t let it be the Bank of Grandpa for anything they can’t afford or to routinely supplement what you provide.
Can I loan my kid money if they run short?
Please don’t. You are teaching them that you will always be there to bail them out and they don’t have to be responsible. You may still be doing this when they are 40!
Does my kid have to save 10% every month?
Developing a habit of saving is crucial to financial success. It doesn’t have to be 10% but it needs to be enough for them to build a cushion for unexpected expenses.
My kid wants to quit an activity to save money, we think it’s important he/she continues it. How do we handle this?
Decide what you will require and make it non-negotiable. But remember, you want them to make as many decisions as possible independently.
My kid wants to buy an expensive pair of shoes, if he does, he won’t be able to pay for his school lunch. How do we handle this?
Help him reason it out. If he chooses to buy the shoes, he will have to get up early and pack his lunch every day before school. Don’t make it and pack it for him.
Are there additional costs for the app and tools?
The tools on the website are free to download and use
The Cabbage app is also free to use. There will be an option to upgrade to a paid version with additional features in a future release.