Bank of Allowance Givers: Raising Financially Savvy Children

Honorable Mention, 2014 San Francisco Book Festival

Pageflex Persona [document: PRS0000423_00070]

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Bank of Allowance Givers: Raising Financially Savvy Children (BAG) is a hands-on guide to teaching basic financial concepts and strong money management skills to children, with an emphasis on saving instead of spending. Through their own real life experience with their own allowance money, your children will learn the pitfalls of high interest credit, and the importance of not spending more money than they have in their account. The book is best for children in grades three through six, but older children can also benefit from it.

Specifically, as a parent utilizing the BAG system, you will:
• Discuss with your child what chores must be done each week to earn an allowance.
• Memorialize those chores in the Chores Contract.
• Choose an allowance day (payday) and amount.
• Negotiate with your child both good and bad interest rates, as well as the savings bonus.
• And much, much more.

First and foremost with the BAG system, children are encouraged to be savvy savers. But there will also be the opportunity to learn the real world pitfalls of credit purchases. Your children will learn that something they purchase on credit costs more than the price listed on the price tag. Calculating interest (both good and bad) will become second nature to them.

Tips are also offered to help parents improve their own finances. With BAG, you will learn how to stop spending beyond your means, and get your own finances under control. Working alongside your children,you can model good money management skills. At the end of this process, your children will understand the importance of saving money, and will ultimately be good—if not great—money managers.

Such skills learned at an early age will serve your children well later on in life when they go to college or move out on their own. They will not blindly incur credit card debt or enter into high interest loans, because they will understand the true costs of accumulated interest, becoming savvy savers and wise spenders. Share this vital knowledge with your children, and you will help them ultimately to become financially successful adults.


If you purchased an electronic version of Bank of Allowance Givers: Raising Financially Savvy Children, here are the zip files for Appendices A-D: BAG Allowance Agreement, Chores Contract, Checks, and the Check Register. Once you download the files, you can print and write in them as needed.

BAG PrintDocs

The book is available in electronic and paperback versions. If you have not yet purchased the book and wish to do so, here are the links to Amazon: and Create Space:

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