Children allowance and purchases



Each week I give my two boys an allowance based on the principles of "The Opposite of Spoiled" by Ron Lieber. Most of my children's purchases are online so I usually purchase the items using my credit card. My issue is that I'm not sure how to enter this into YNAB.

Steps that I take:

1- purchase item online using credit card

2- Enter purchase on my credit card account under a specific category for online purchases

3- Take the cash from my children

4- Enter the cash into my cash account

4- Pay off credit card using the money from the online purchase category 

I'm not sure this is the best way so I wanted to know if there is anyone out there with the same scenario. 

Thanks a lot



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    • Vibrant
    • No more counting dollars, we'll be counting stars
    • vibrant
    • 3 mths ago
    • Reported - view

    I do basically what you do. My "online purchase" category is called "Bank of Mom" and it gets used for the following scenarios:

    1) when I purchase something on behalf of my kid, the purchase is categorized to Bank of Mom.

    2) when the kid gives me cash for something he wants to buy, I pocket it (I don't keep a cash account in YNAB) and move money from elsewhere in my budget - usually one of my personal spending categories since that's most likely how I'll send the cash instead - to Bank of Mom. (If I (rarely) deposit the cash later, I categorize it as regular inflow:TBB with a memo of where it came from).

    3) when the kid does an extra chore for money and I don't have enough cash on hand, I move money from elsewhere in my budget to Bank of Mom.

      • Peter
      • Professional Designer, Web Developer
      • lasty
      • 2 mths ago
      • Reported - view

      Vibrant I love "Bank of Mom". Thanks for the smile

  • I don’t give my kids cash. I just add to their category in ynab. It makes things so much easier

    Like 1
  • Your OP is pretty much how I handle it. Although I've moved my older kid to a debit based bank account (not in my budget), so I can just transfer the money as needed. Sometimes I cash flow the allowance for smaller purchases with the younger kid (as in, they owe me money, so they don't get the allowance payment in the amount owed)

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  • 2 mths agoLast active
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