Give/Save/Spend Questions

[nrp]

The allowance thread got me thinking that we should probably start DD1 and DS on an allowance. We are probably doing $1/yr of age per week, with a strong encouragement from us to donate $1 to our church each week and save $1 (or more, as they choose).

My question is, how do you guide your kids on their spending as between the "save" and "spend" categories? Is "save" exclusively for very long-term expenses (first car, college, etc.), or just for big purchases - like a coveted expensive toy? Do you let them plunder their "save" as they choose, or does it have to be approved by you? What about gift money? Does that get divided up in the same ratios? Or do they get that all towards "spend"?

I am thinking of a scenario down the road in a few months where DD1 sees something cool on TV that she wants. She has, say, $40 in the "save" bank. Can she elect to just spend that on the new toy? Or does she need to save up her "spend" money for that?

I know there aren't right or wrong answers - just curious what those of you with more experience have handled it.

[cbscherer]

The allowance thread got me thinking that we should probably start DD1 and DS on an allowance. We are probably doing $1/yr of age per week, with a strong encouragement from us to donate $1 to our church each week and save $1 (or more, as they choose).

My question is, how do you guide your kids on their spending as between the "save" and "spend" categories? Is "save" exclusively for very long-term expenses (first car, college, etc.), or just for big purchases - like a coveted expensive toy? Do you let them plunder their "save" as they choose, or does it have to be approved by you? What about gift money? Does that get divided up in the same ratios? Or do they get that all towards "spend"?

I am thinking of a scenario down the road in a few months where DD1 sees something cool on TV that she wants. She has, say, $40 in the "save" bank. Can she elect to just spend that on the new toy? Or does she need to save up her "spend" money for that?

I know there aren't right or wrong answers - just curious what those of you with more experience have handled it.

We make her save for long term NEEDS (college, a car one day). Wants and desires go in the spend category. She gets to spend 80 percent, but she can chose to save/give more. She also has to give at least 10 percent to charity, although she usually choses to give me. We may need to up the "save" category to over 10 percent. I want to make it equivalent to what she should do as an adult. I'm sure other people do differently.