Comments

  1. When did you first start giving her an allowance? My kids are younger and we haven’t started that yet but I think it’s a good idea to start teaching them about money early.

    • I agree about teaching them about money. You sometimes don’t realize what kids are picking up from you about money.

      We started the allowance when she was 9 (I think).

  2. I find it’s really not that hard to get the kids to remember the date of their allowance. My eldest, since she was 7 or 8 could remember exactly how many weeks it has been since we last got around to paying hers. lol

  3. I don’t have children (yet) but if I did then I would do something similar with mine. I did not get a regular allowance as a child but I had a savings account from a very early age (because I wanted to be like mommy and have a pass book). I put all my money into the bank and although I did not understand compound interest I knew that the more money you put in and the longer you kept it the more the bank would pay you. Great idea on using a sub account in ING to keep her money separate so that she can see her money growing.

    • Thanks Lulu. I didn’t get a bank account of my own until I was 18. My Grandparents took me to the bank and helped me open it up (and put money into it).

  4. We don’t have kids but my husband and I each have our own fun money sub-account with ING as well, lol. Around the 15th of every month, I transfer $125 to each of those accounts. At the end of our financial month, I transfer whatever amount each of us spent on our own fun stuff from our fun money account to our checking account. It’s worked wonders for keeping me feeling secure, which makes my husband happy since I nag him way less. :-)

  5. I don’t have kids yet, but I love this post. I hope that I have kids this great about savings sometime in the future!

  6. That’s pretty cool. Our daughters are about the same age. I am still trying to get mine to complete her chores. Its tough. LOL. But when she does have money, she is good at saving it. I might also add that it would be a good time to open a separate account to put 10% aside in a savings account for long-term growth.

    Check out his 10 year old. Start em young!

    • I won’t say our daughter always does her chores but she’s pretty good (though there have been weeks where she got less).

      I was thinking of possible opening up something like a ShareBuilder account where she could buy Disney stock (yes, she can own the Jonas Brothers!).

  7. I didn’t get much of an allowance growing up. But what ever I did get I had to save half and tithe. Pretty simple stuff and it set a good grounding for me and money. If you are only ever getting a percentage of what you actually got.

  8. Wow look at you raising the responsible daughter! FANTASTIC! I love ING for the exact same reasons! Naming Subaccounts is a huge plus that hasn’t been copied just yet by other banks

    • Thanks Evan. Better get that sub-account ready for your little one!

      The sub-accounts are an awesome way to track different savings goals.

  9. Awe! You sound like a really good dad and your daughter sounds like she’s learning lots about money!

    I love ING direct and their sub accounts. It helps you know which “pot” you’re putting your money in/ and saving up for.

  10. I’ve been meaning to set up ING accounts for our kids to “roll-over” their cash savings from their “virtual” accounts at the Bank of Mom & Dad. I like your setup. I happened to have built a “Virtual Family Bank” that is somewhere between a piggy bank and a real bank as a way to teach kids good personal finance habits through hands-on practice. It tends to be more flexible for the parents and accessible to the kids than a real bank, but I definitely think the two can be used in a complimentary way.

  11. That is such a great idea!!!

    I hate to fumble around trying to make change for my son and daughter’s allowance. Most days I have it, but every one in a while…

    Sounds like you got a pretty smart daughter! :)

    • Thanks. When I don’t have change my daughter usually can break something easy from her personal bankroll. Transferring the allowance does eliminate that though.

  12. Some good stuff here.

    One technique that can help demonstrate the power of investing or saving or compounding is to have your child actually spend some portion of their interest, dividends, etc. one time on something small – maybe an ice cream or candy bar or some other kind of treat.

    The concept of their money making more money becomes less abstract when they actually have something in hand that they paid for without having to work to get it (or without their parents having to work to get it).

  13. we have ing kid accounts set up as well and pay their allowance directly into these accounts. since interest rates are so low, they don’t really learn the power of savings and compounding. i suggested to ing that they allow the parent account to pay out “interest” to their kid’s accounts – really just an auto-transfer to subaccounts based on an average balance. unfortunately, just a canned reply. I’d like to pay the kids 10% to get them more excited about savings

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