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I have a child in between the ages of your kids. I tried instituting an allowance with a discussion about spending, saving, charity and disconnected it from chores. She was just going to get it to learn how to handle it. Well, the talk went well, but then she disappeared with 2 of her 3 dollars. Come to find out she "weathered" 2 of the dollars so they would look worthy of keeping in a pirate treasure chest! She had taken some scissors to the paper money and cut them on the edges to make them look old enough for her pirates. Oh my. She is still clearly only interested in fantasy money. I'm waiting until she shows more interest in buying things, what things cost, are worth. So far, she is not bitten by the "buy me" bug. Once that bites, I'll probably bring the allowance back.
I don't like tying it to chores, because I expect her to do them anyway. I know my kid, if I tied $ to chores, she'd be totally willing to do without the money to skip the chores. When she gets older, I might give extra opportunities to earn money above and beyond her normal chores, but I do think it's important for kids to just know that there are certain responsibilities that don't go away. Like picking up after yourself.
What are you trying with your kids?
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