The One-Page

Allowance Plan
Welcome!

Getting money into your kiddo's hands is one of the best methods for teaching
them all those money life skills they need. 

But, HOW exactly are you supposed to get money into their hands?

And better yet, how can you do it in a way that naturally teaches the skills
YOU want to pass on? 

Well, I'm about to guide you through creating your allowance plan, a one-page
blueprint that you can refer back to and tweak until they're 18.  

Don't worry --  I'm going to make this pretty easy on you.  
 
Here’s what I want you to keep in mind as you go through this: 

#1 Instead of focusing on which system is "the best" or the "correct one", I

want you to focus on creating a plan that you can stay consistent with.
Consistency of payday, length of time between paydays, etc. is more
important than choosing the "right" plan, hands down.  

#2 Choose a system with the end parenting goal in mind. That is, to one day
have your child (young adult at that point) be in complete control of both the
spending and the earning of their money. 

#3 Understand that each system can be tweaked to make it feel more like
"you", and that you will need to tweak/evolve your system as your child grows
+ develops their money capabilities. 

From Money Prodigy's Brain Lab, © 2019 | MoneyProdigy.com

 #1: Build Your Money
Goals into Your Plan 
Here's a secret most parents don't know: you can build your Allowance Plan
so that your child naturally discovers the money goals/lessons you want to
teach them. 

It's the best way to start a kid's money education!

I've listed out a  handful of the most common money goals + lessons parents
want to teach their kids. Then, I've given you an idea for how to work each into
your Allowance Plan. Cherry-pick, as needed! 

Money Goal How to Build it Into Your Allowance Plan

Money doesn't
Payday: Tie their Payday with your own Payday, and explain
grow on
to them where the money comes from. Pay them with cash. 
trees/Value of
Money Responsibility: Have your child pay for something
money in a plastic
they want from money they have earned. 
world

Payday: Choose a Sunday Payday so that they spend more on

Spend on Needs their weekly money responsibilities vs. on weekend activities.
First, then Wants Money Responsibility: Hand over the responsibility for
paying for a category that at least borders on a need (such as
Girl Scout fees, sports equipment, or after school snacks).  

Be Intentional Payday: Help them fill out a spending plan for each payday.
with Celebrate when they keep it. 
Spending/stop Money Responsibilities: Have your child set up their own
wasting money on percentages for what they'll save, what they'll spend, and
"silly" things what they'll give. 

Payday Duration: Make sure they don't get enough money

You need to
each payday to pay for the things they want. 
always save for the
Money Responsibility: Hand over a money responsibility for a
Big Picture
spending category more than a month away, that is a need.

From Money Prodigy's Brain Lab, © 2019 | MoneyProdigy.com

#2: Choose from the 5 
Allowance Foundations
Each allowance plan needs System as it's foundation (yes, you can add
elements from one system into another one to make it customized to you). 

There are 5 Foundations for how to get money into your child's hands. I've
listed them below, in order from least consistent/most parental control, to
most consistent/most kid control. 

Hint: Listen to your gut while you read through these. 

Foundation How does it get money into your kiddo's hands? 

Your child asks for money when they'd like to buy

The Dole  something they need/want, and you either say
Method yes or no.

Learning- You pay your child a certain amount of money

Based based on their learning performance. Can be
Earnings effort-driven, or grades-driven. 

You pay your child an agreed-upon sum of money

Allowance
every X number of days. 

You pay your child an agreed-upon sum of money

Chore
for a collection of tasks/chores that they
Commissions
complete. 

Consultant-
You pay your child based on kid-initiated projects
Based
and ideas for around the house. 
Earnings

From Money Prodigy's Brain Lab, © 2019 | MoneyProdigy.com

 #3: Fix Kid Money 
Issues w/ Your Plan
Kids mess up with money all the time -- more so than adults, because they've
got their money training wheels on! 

That doesn't mean you're not tired of nagging them about some of these
common money problems!

At this point, you likely also know at least something about your child's money
personality/tendency (are they a saver/hoarder, or a spender, etc.). 

Bake solutions to these common issues that drive us Mamas batty right into
your Allowance Plan. 
Money Behavior How to Change it with Your Allowance Plan

Method of Pay: Direct deposit their allowance into their

They're spending
savings account to create a spending buffer, since it takes a
all their money as
few days before they can get their hands on it. 
soon as they get it.

Payday Cycle: Change the amount of their pay/stretch

They have no time in-between their paydays so that what they want to
motivation to save buy takes at least two allowance cycles to get. 
for anything.

Payday: Change their payday to the end of the weekend for

Buys ridiculous
less opportunities to buy things. 
stuff that they
Money Responsibility: Help them write down a spending
later regret. 
plan for each allowance. 

Waits until last Money Responsibility: Make a rule that they need to keep
minute to tell you a money buffer in their piggy bank. If they can't cover the
they need money amount they forgot to tell you they need until you can pay
for something.  them back, then they don't get to do whatever it is. 

From Money Prodigy's Brain Lab, © 2019 | MoneyProdigy.com

 #4: Fill In Your
One-page Allowance Plan
It's time to put your Allowance Plan together. 

A full plan -- meaning one that will actually teach your child money lessons  --
has four components to it. 

Allowance Plan

Clear Money Allowance

Goals  Foundation

Clear Money
Payday Details
Responsibilities

From Money Prodigy's Brain Lab, © 2019 | MoneyProdigy.com

 #4: Fill In Your
One-Page Allowance Plan
Component What it is

Identify what your money goals are for your child.

Clear Money What do you want your child to learn about
Goals money?

Choose from one of the 5 allowance foundation

Allowance
systems (the dole method, learning-based
Foundation
earnings, allowance, chore commissions,
consultant-based earnings).

When, and how often, will your child be "paid"

Payday their allowance?
Details

What purchases/expenses will your child now be

Clear Money
responsible for out of their allowance? You need
Responsibilities
to clearly communicate these with them.

Don't worry -- I'm not leaving you hanging.

On the following pages are several pre-filled Allowance Plan Blueprints to give
you an idea of how these four components all play together in real life.

Swipe what you need for your own One Page Plan! 

From Money Prodigy's Brain Lab, © 2019 | MoneyProdigy.com

Kid Karen, 44, Breadwinner (6-year-old son)

Allowance
Wants to teach her child that money doesn't grow
on trees, and "we don't buy toys at every store."

Plan
Has only one child. So far, it's just been easier to
give out money as needed/wanted.
Has no idea how much/month she's doling out.

Money System Foundation

The Dole Method Chore-Based Commissions

Learning-Based Earnings Employee-Consultant-Based Earnings
Allowance

Payday Cycle Method of Pay

On-demand Cash
Daily Purchase On Credit Card

Weekly Check

Bi-Weekly (every two weeks) Gift Card

Monthly Direct Deposit

At the end of each semester Allowance App

Payday: M T W TH F S SU

Pay Amount Examples: Child's Money Responsibilities:

$14.99 Transformer toy

Child completes some store
$2.99 Checkout Candy transactions - maybe once per week.
$5.00 School Store Child gets $15 in one lump sum, one
$3.25 Ice-Cream Truck week in the month to help her son start
**Karen has started keeping track of how to learn to manage money (and bridge
much she's doling out, and has put a limit of the gap between the Dole system and
$15/week on the money. She wants to another allowance system).
upgrade to another system soon.
From Money Prodigy's Brain Lab, © 2019 | MoneyProdigy.com
Kid Alexis, 37, SAHM (9-year-old daughter)

Allowance
Wants to teach her child to always save money for
the big picture.

Plan
Child has no motivation to save for anything, and
spends money as soon as she gets it.
Has stopped giving her child money (frustrated).

Money System Foundation

The Dole Method Chore-Based Commissions

Learning-Based Earnings Employee-Consultant-Based Earnings
Allowance

Payday Cycle Method of Pay

On-demand Cash
Daily Purchase On Credit Card

Weekly Check

Bi-Weekly (every two weeks) Gift Card

Monthly Direct Deposit

At the end of each semester Allowance App

Payday: M T W TH F S SU

Pay Amount: Child's Money Responsibilities:

$10.00/week Child will pay for any Pokemon cards she

wants out of her weekly allowance.
**Alexis used to do a bi-weekly allowance for
$20 each time. But her daughter thought she Alexis has always wanted to set up a
was rich each payday, and would spend it sibling gift exchange, and so she's given
very quickly since she only got money every the responsibility that each child will
so often (and it was eons to her before the now be responsible for buying their
next payday came around). So, she's changing siblings a Christmas gift out of their
to weekly. own money.
From Money Prodigy's Brain Lab, © 2019 | MoneyProdigy.com
Kid Samantha, 42, VA (13-year-old son)

Allowance
Wants her son to learn initiative, how to earn
money, and how to start a business.

Plan
Wants him to learn how to save for specific goals.

Doesn't carry cash and wants a cashless system, if at

all possible.

Money System Foundation

The Dole Method Chore-Based Commissions

Learning-Based Earnings Employee-Consultant-Based Earnings
Allowance

Payday Cycle Method of Pay

On-demand Cash
Daily Purchase On Credit Card

Weekly Check

Bi-Weekly (every two weeks) Gift Card

Monthly Direct Deposit

At the end of each semester Allowance App

Payday: M T W TH F S SU

Pay Amount: Child's Money Responsibilities:

Up to $30.00/every other week
(if chores are completed, and
without nagging)
**Samantha used to give out a weekly
allowance of up to $15 for chores, but
changed to bi-weekly to teach him how to
save money from one week to the next.
From Money Prodigy's Brain Lab, © 2019 | MoneyProdigy.com
Out of his chore earnings, her son must
pay for weekend trips to the movies
with friends.
Once a month, her son gets to initiate a
project he identifies around the house
(like organize the video gaming center
in a more efficient manner), and
negotiate for how much he should be
paid for it with his mother.
Kid  Money Goals for Your Kiddo

Allowance
Plan
Money System Foundation

The Dole Method Chore-Based Commissions

Learning-Based Earnings Employee-Consultant-Based Earnings
Allowance

Payday Cycle Method of Pay

On-demand Cash
Daily Purchase On Credit Card

Weekly Check

Bi-Weekly (every two weeks) Gift Card

Monthly Direct Deposit

At the end of each semester Allowance App

Payday:  M T W TH F S SU

Pay Amount Money Responsibilities

$ Per Payday

$ Per ___________

$ Per ___________

$ Per ___________

From Money Prodigy's Brain Lab, © 2019 | MoneyProdigy.com

 What's Next?
Sooo...you're getting consistent money into your kiddo's hands (or at
least you WILL be after putting your allowance plan into place -- bravo,
Mama Bear!). Now what?

The next step is to teach your child the #1 money management lesson:
how to save money. And not just any old boring method will do.

Hey-ooo! I'm Amanda L. Grossman and I teach

kids aged 8-13 years how to manage money
through educational adventures, like the Mt.
Everest Money Simulation.

Because boring worksheets? They're just not

going to cut it. Especially on an important topic!

Your child needs to be put into simulated money situations that reflect the
realities we all face -- limited resources, decisions made in the
past affecting our future options (helloooo student loans!), etc. -- in order
to truly grasp money before getting their hands on a paycheck from a job-
job.

That's why I created the Mt. Everest Money Simulation: A Kid's Educational
Adventure. I'll tell you more about it in an email later on.

Dying for a sneak {PEAK}? Click here.

http://www.moneyprodigy.com/everest-money-simulation/