A few months ago, Kate and I noticed that our young son Gus had started picking up on the fact that stuff isn’t free. He realized you need money to buy food, clothes, and yes, even Hot Wheels. When Gus started asking us to buy him toys when we were out shopping, we figured it was time to begin paying him an allowance.
Yet I had a lot of questions: Should his allowance be tied to doing chores? How much should we give him? Should we have him put his money in a real bank account? Giving an allowance is one of the first and best ways to teach kids about managing their money, and I really wanted to implement a method that would teach him sound budgeting and financial principles.
To figure out the answers to my questions and come up with best practices, I did a lot of research. Below I share what I’ve learned for you other dads out there looking to raise savvy money managers.