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
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.
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)