This year, Hubby and I decided that Kuya should finally be given a daily allowance. Seven years old is a suitable age for Kuya to start developing a relationship with money. Since he's learning about it in his Math class, why not make it a practical learning opportunity? This is a great tool to teach him how to handle money and know that it doesn't grow on trees. Although, I know, we all wish it did.
This allowance is really not tied to any basic chore or a certain grade. He does chores around the house because, as a member of the family, he needs to help out and maintain a decent grade. This is his "work." So fixing his bed and cleaning up after his mess is expected of him. But I do give him an allowance for setting the table, sweeping the backyard and tidying up the plates. These are extra tasks.
I give him Php5.00 a day. I know, I know, Hubby says I'm a big tightwad. But it's a good, round figure to start with.
Kuya and I agreed on certain things before I gave him his daily allowance. He is not allowed to buy candy. If he wanted to buy anything that costs more that Php20.00, he will have to let me know first. If he wanted to buy something extra, like a magazine or a toy, it'll have to come out of his allowance. And that I will match whatever money is saved up in his piggy bank by December 1.
The last item was thrown in for good measure. I didn't want him to go spend his Php5.00 daily allowance on snacks. It is an incentive for him to save. The more money he drops in his piggy bank, the more money he'll have by December--hopefully.