Handling allowances in YNAB

I have five kids and we have each of them set up with a simple budget of their own, with a corresponding budget category on my budget.  They keep money in the “family bank” and when they make a purchase, I have to enter it in their budget and my budget.  Anyone found a simpler way to handle allowances? I anticipate this getting crazy with five kids making Christmas purchases for each other and cousins! 

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  • I'm not convinced this is the best way, but here's what I do.  Each child (I have 3) has their own tracking account of type "Other Liability", since that's what it is from my perspective.  I also have a single budget category called "Kids' banks" that I make sure to fund enough to cover the balances in the tracking accounts.  When I want to pay them for something like a chore, or their allowance in your case, I would record that as an outflow in the appropriate tracking account.  When they actually use the money to make a purchase, I record that as a transfer from my budget account to the tracking account, with the category set to "Kids' banks".  This simultaneously records the transaction appropriately in my budget, and reduces the liability in the tracking account.

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  • I have a hard time with this too! Hopefully parents will keep making suggestions. It’s tough because my sons money is in my bank account so it is tough to imagine setting up his own budget. 

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  • I do the same thing you do, have a budget line in my budget for each kids allowance and they have their own budget where they can make their categories. I only have two kids, so it's working out good for us.

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  • This is something I am still experimenting with as well. But I just started each kid their own budget and showed them how to sign into their own budget. But I have them on my old ynab4 until they get the hang of it. My 4 kids are age 5 through 15. They all get their allowance in cash then they go to their budget and enter it as income and keep it in a pouch. They count the money on payday to make sure everything matches (helps with counting skills too). My older son has a checking account that I showed him how to check online to make sure everything matches his budget. 

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  • We don't have "the bank of mom".  I give them their allowances every Friday afternoon and they keep it in their piggy banks.  

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  • I've been handling it the same way you have.  I have a budget category for each of my 3 children, and then have to double enter cash out and cash into their separate budgets.  There isn't an actual account for them, as far as allowance goes, and their bona fide savings accounts where college, birthday, and other more significant sums of $ will go, are set up as tracking accounts.  I would be great to move money from one budget to another.

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  • Our kids handle their own money and have their own budgets. They get their allowances every Sunday.

    The only time we do "bank of mom and dad" is if they get a gift card as a gift. We "buy" it from them and add it to our budget. We then use the gift cards up through normal purchases, and they can use their credit for whatever they want wherever they want instead of at the specific location the gift card was for.

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  • There is no "family bank".  They get their allowances.  It's now gone from my budget.  They get their allowances.  They now have to budget for them.  (Each child's "piggy bank" is an account in the joint kids' budget.)  Some categories in their budget are joint, some belong to each one individually, but none can spend money that's not in a category.

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