Kids, here’s a sure fire way to stop parents from raiding the piggy bank. In the T. Rowe Price Parents, Kids & Money survey parents admit that they “borrow” money from their kids’ piggy banks. Now that the cat (or piggy bank) is out of the bag we know who has been dipping into your stash.
To stop piggy bank thievery in your home, insist that your parents set you up with The No-Cash Allowance.
No-Cash Allowance: An allowance system in which a child controls all funds received from parents through a written account initially kept in the home. Adults act as bankers and the child as account owner.
With a no-cash allowance you have a written account, similar to your parents checking account. Consequently, all you need is a pencil and account log. Download account logs here
With a no-cash allowance account you keep track of your money. That means you write in deposits from allowances and other sources of money, perhaps chores that you get paid for.
When you want to spend money you may ask for a withdrawal. As a result, your parents give you the cash. Just like an ATM machine in your home. Pretty cool, huh?
Or you may go shopping with your parents. They pay for your purchases at checkout. At home you subtract the amount. Just like a debit card. Very cool.
No-cash allowance to the rescue
On allowance day you don’t have to remind your parents, or roll your eyes when they tell you that they don’t have the cash. You simply add the amount they are supposed to pay you and see your balance grow. When you want to spend money you make the withdrawal, subtract the amount and your balance gets smaller.
With a written account you always know how much money you have without having to count it. However, if you don’t keep good records, you can’t show your parents your balance when it’s time for a withdrawal.
Ask your parents to read What is a No-Cash Allowance to help them get started. Make life easier for you (and your parents) by setting up a no-cash allowance today!
Lynne Finch helps parents teach their kids about money from piggy banks to online banking. “It’s time to teach the kids how to manage money they can’t see or touch,” says the author of The No-Cash Allowance. Follow Lynne’s common sense approach for teaching children that money is a number with kids as young as pre-school and continuing through high school