Allowance and Spending

The basics

Topics of Discussion

• What is money?
• What is money management and why is it important?
• How do we manage money?
• What’s next?

What’s Money Management

Money buys assets, property, and things (like clothing, jewelry, etc.)

Money circulates from person to person and country to country, facilitating trade, and it is the principal measure of wealth (Britinnica)

Money Management is how good you are in managing money you earn (income) and money you spend

Let’s talk Money

Let’s discuss the following:

1. What does money mean to you?
2. How do you or others you know make money?
3. How do you use money or see others use money?
4. Why do think money is important?

Money Management: Allowances and Spending

Allowances are money that you get

Spending is money that you use to buy things such as food, clothes, toys, etc.

Knowing how to manage that is Money Management

Managing money is important so that we can take care of our (and our family’s/friends’ needs) and get what we want - the smart way - and be rich

Let’s talk about You

Let’s discuss the following:

• Who here gets an allowance?
• How do you earn your allowance: chores, grades, other?
• How do you spend it?
• What will you do if you wanted to buy something and didn’t have enough money?

Allowances and Spending : Let’s play a game

1. Let’s say each one of you get $20. Think about how you will divide it in different buckets (see the link: https://www.incharge.org/wp-content/uploads/2015/07/Student%20Guide%20Lesson%201-Allowances.pdf)

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• Let’s take 5- 10 minutes for each one of you to make your choices

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• Let’s come back and discuss how did we do

What’s Next

1. You can talk to your parents about allowances and share with them your thoughts about how you would like to spend the allowance
2. You can create a Spending Plan and track it in the spending diary with your parents (https://www.incharge.org/wp-content/uploads/2015/07/Student%20Guide%20Lesson%201-Allowances.pdf)
3. You can watch youtube videos/shorts on allowances and spending: https://www.youtube.com/watch?v=NfurkrZEn3Q
4. You can read books (see the next slide on fun books) and talk to your friends about the topics that interest you
5. You can take classes that can teach you next level of building and managing wealth
6. You can find games such as Allowance
7. Don’t forget to have FUN!

Books

• Aldo Ice Cream, by Johana Hurwitz, New York:

Puffic Books, 1989. Nine-year-old Aldo discovers

the pleasures of doing volunteer work to help the

older citizens of the community. He also discovers

the satisfaction of earning money on his own.

• The Kids' Allowance Book, by Nathan, Amy, New

York: Walker and Company, 1998.A guide to all

aspects of allowances, including how to get one,

how to save it, and how to use it wisely.

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• Benjy in Business, by Jean Van Leeuwen, New York: Dial Books for Young Readers, 1983. Eight-year­ old Benjy tries various schemes to earn money to buy a baseball glove.
• Boys at Work, by Gary Soto, New York: Bantam Doubleday Dell Books for Young Readers, 1995. Companion to The Pool Party. When 10-year-old Rudy breaks an older boy's Discman at a baseball game, he and his friend Alex come up with a variety of ways to make money to pay for a new one.

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• The Bunnysitters, by Kate Banks, New York: Random House, 1991. Hoping to make enough money so they can finish building a derby car, two boys offer to take care of a neighbor's rabbit.
• Do the Bright Thing, by Bill Myers, Wheaton, IL: Tyndale House, 1990. Eleven-year-old Nicholas and his best friend McGee, a cartoon character that has come to life, learn about the process and pay-off of making money

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