The Allowance Question
This tip is not about the great debate over how to handle allowance and how much to give. (We personally do not tie allowance to chores. We believe chores must be done because you are a household member, and are not done in exchange for a reward. Our kids get allowance because everyone needs money, and because they need to learn to handle money.) But this tip is about how to apportion whatever allowance you decide to give. We give allowance in three portions: short term savings, long term savings and charitable funds. The long term savings goes into the bank, and short term goes into their wallets. But the charitable funds build until the child (usually without adult prompting) hears of a particular cause that is in need and is moved to help. The child decides to whom and how much to give. This has been tremendously successful since our oldest was only about 7 years old. It is truly amazing the natural tendency children have to be altruistic, if we only nurture it. Try it, you'll be delighted by your child's giving spirit.
I love your idea and I couldn't agree with you more.