Allowance as a Direct Deposit
I have each of my kids (age 6 and 9) set up with their own budget in YNAB. They both enjoy budgeting but are also both very busy with activities and life so we don't always remember to sit and do allowances. But I have each of their allowances set up as a recurring weekly item in their budget so it just appears even if I don't remember to sit down and take care of it.
My daughter realized the other day, "Oh no, Mom! We forgot to do allowances."
My son replied, "Don't worry, we get ours on Automatic Deposit so it's just there waiting for when you have time. Since you don't have time to spend it, it just adds up."
So there you have it--get your paychecks set on Direct Deposit and if you don't have time to spend them, it just adds up. Good life lesson.
For other parents struggling with the weekly budgeting, this has worked really well for us. It does feel unnerving to sit down and budget larger amounts of money with a young kid if we miss several weeks in a row but it has actually helped them realize how fast the money can accumulate if they don't spend it. I also use YNAB like a bank account for them--if they have cash (from a birthday or doing an odd job or something), they can either keep it or give it to me to "deposit" in their budget (and then I put the cash into my budget and spend the cash on groceries or whatever).
My daughter is always finding change and having me deposit a nickel or penny. I don't put that in my budget...
That is a great way to manage and teach!
I set up their own bank accounts for them when my kids were 10 and 12, and they asked me to transfer their monthly allowances to their accounts. They love getting statements and seeing how it grows with a little bit of interest. My daughter is a natural saver, but with my son if he has it in hand he spends it. This has really helped him save for larger purchases.
I will start tracking their accounts in YNAB and using it as a way to introduce the family budget to them. Thanks for the idea!