Managing Allowance for Kids

How should allowance be managed?

Host: How should allowance be managed? Rene Hackney: With managing allowance, it's giving them places to put that money. There are piggy banks that divide into three categories now. In our house, it's just three bowls. We have a bowl for spending, a bowl for savings and a bowl for charity. But once that money is out there really is up to the child to go ahead and manage it to be sure that they are saving that amount of money or spending a certain amount of money. Now younger children of course need more guidance, and if you find your child as overspending, then it means talking to them about a budget and how to budget and why it's important. If you find that they are over saving, that they are hoarding all their money, but they are not enjoying any spending, any of that money, it's talking to them about loosening up a little bit and giving them things that they might to save for to spend down.