I read this post from Michael Karnjanaprakorn about he handles his girl’s allowance.
I think there are some great ideas, that I am taking for Lucas’ and Nico’s pocket money in a few years:
– How to set the allowance: weekly, 1€/year. i.e: 10 years, 10euros/week.
– Compounding: set an interest rate on savings, i=10%/year. This teaches them about compunding.
– Doubling savings: every year if savings are over 50€, double it to reinforce patience and savings.
This will need a spreadsheet, another great skill to teach.
A thoughtful and great approach on how to handle finance skills and allowance.