Teaching Kids About Money: Allowance Hacks That Don't Make Us Want To Cry

Ever heard of the 50-30-20 rule? It's like budgeting for dummies but in a totally nonoffensive way, I promise. Basically, it's a simple guideline that teaches kids to allocate their money wisely: 50% for needs, 30% for wants, and 20% for savings.

Think of it as a crash course in financial responsibility with a side of humor to keep things light. This is a helpful system to put into place from the beginning so you don't end up with a teenager who is spending her entire Aerie paycheck at Aerie.

Not that we don't love Aerie, but what about needs and savings? It can't always be about our wants or we'd all be homeless fashionistas.

Now, I don't know about you, but when I was a kid, the thought of learning about money was about as exciting as watching paint dry. Let's be honest. Money wasn't something I concerned myself with as a child. But who says financial education has to be boring? Get creative with it – turn budgeting into a game.

Set up a pretend store for your little ones to practice spending and saving, or heck, bust out the Monopoly board and teach them about real estate. (Bonus points if you manage to sneak in a lesson about taxes.)

Imagine this, which shouldn't be hard as this has happened to every mom on the planet at least once. You're at the grocery store with your little angel, and they spot the latest toy they just HAVE to have. Cue the dramatic monologue about wants vs. needs, complete with exaggerated gestures and maybe even a few tears (yours or theirs, take your pick).

Trust me – a little theatrics can go a long way in driving home the importance of making smart spending choices. You can even give them a choice so they can learn the valuable lesson that sometimes, you have to make sacrifices for the things you want. You don't normally get to have it all, nor do you need it all. Plus, it makes for some pretty entertaining stories to share with your mom squad later.

Ah, allowance – the holy grail of childhood. But how do you dish it out without turning your home into a free-for-all? Simple. Tie it to chores and responsibilities. That's right – make 'em earn it, baby!

Whether it's taking out the trash, folding laundry, or walking the dog, giving kids a sense of responsibility — and a few extra bucks in their piggy banks — can teach valuable life lessons that'll stick with them long after they've flown the coop. It's never too early to learn that nothing in life is free.

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The "Save, Spend, Share" Jar: Create three jars labeled "Save," "Spend," and "Share." Whenever your kiddos receive their allowance, encourage them to divide it among the jars. The "Save" jar is for long-term goals, such as a new toy or a special outing. The "Spend" jar is for immediate wants, such as candy or small treats. And the "Share" jar is for giving back – whether it's donating to a charity or buying a gift for a friend. It's a simple yet effective way to teach the importance of budgeting and generosity.

The Priceless Piggy Bank: Turn saving into a game by setting up a "Priceless Piggy Bank." Every time your kiddos resist the temptation to spend their allowance and choose to save instead, reward them with a special coin or token to deposit into their piggy bank. Once the piggy bank is full, celebrate with a fun family activity or outing. Not only does it reinforce good saving habits, but it also creates lasting memories.

Got a genius allowance hack up your sleeve? Share it with us in the comments on Facebook. Let's crowdsource some money-smart parenting tips and help each other raise financially savvy kiddos. Don't keep those allowance secrets to yourself – spread the wealth and let's learn from each other!