$5 + 5% interest.

$5 + 5% interest.
by rockmcd (2018-10-16 11:41:24)

In reply to: Seeking ideas on allowances for kids, aged 11 and 9 posted by Giggity_Giggity

So if they have $100, they'll get $5 allowance + $5 interest.
The next week they'll have $110 and will earn $5 allowance + $5.50 interest.
If they blow all their money on something, then the next week they'll only get the $5 allowance.
Allowance gets reduced for not doing chores. Weekly interest sometimes gets revoked for disrespectful behavior.

I'm hoping to instill in them that the money they save is an asset that can help them earn even more money, and not just something that's waiting to be consumed.

Replies:

Adopt me? * - captaineclectic 2018-10-16 19:11:14
Are your kids aware that if they just don't spend money - harmonica 2018-10-16 12:21:51
- 1,164% effective int rate is a good deal if you can get it. * - rockmcd 2018-10-16 12:37:09