I give my 4yo an allowance. It's to help him learn to manage money. It also teaches him that there are certain expectations, rewards for working hard. He gets 50 cents a day, and he's already saved up to buy a lego star ship that he really wanted. We've also opened a bank account for him, and any money he receives as gifts (birthday, Christmas, etc) goes into that account. We'll let him use that if he has anything extra special/expensive that he wants. My husband had over $8000 saved by the time he graduated college because his parents used these techniques.
at 8:12 PM on Jul. 5, 2011