In this episode of the Fiscal Fitness Podcast, Coach Jaclyn interviews Coach Jill, who is a mom of two, all about kids and money. They discuss at what age to introduce debit cards, how much you should spend on daycare, and how much allowance you should give and how it should be given or earned. Jill also admits that at one point when her two boys were young she was paying $20,000/year for childcare. It gets better parents of young kids!
Answers to our community’s questions about kids and money begin at 12 minutes into the episode.
Questions about Kids and Money Asked and Answered in this Episode:
- At what age is it appropriate to get a debit card for my kid? (Answer at 12:00)
- What percentage of your budget should you allocate to daycare? (Answer at 18:36)
- How should I tie chores to a weekly allowance for my kid? How much allowance should I give? (Answer at 28:12)
Main takeaways from this episode about kids and money:
- If you’re trying to teach money management to kids, start with cash. Tangible dollar bills will make it far easier for them to understand the value of money. You want to make money visible and hands on at first.
- The amount you should pay for daycare is going to be dependent on your circumstances, were you live, and how much daycare you need. All that to say, there’s no set percentage that is the “right” amount.
- Consider an after school nanny. It may end up costing less than an after school care program. (It did for Coach Jill.)
- You do not have to tie chores to an allowance for your kids. In fact, Coach Jill found trying allowance to chores was an all around frustrating experience that didn’t teach good money habits.
- If you have a flex spending account act will cover daycare expenses, take advantage of it if you can.
Extra Resources for Kids and Money:
- Schedule a free Q&A call with one of our financial coaches
- Read more about a Eureka session, or schedule your own!
- Read these client success stories. We are always inspired by what our clients accomplish!
- Our Podcast Episode with Allowance Expert John Lanza
- How to Budget When Daycare is a Thing of the Past