We wanted to teach our kids a little a bit about saving money with a monthly allowance.   I wanted to teach them about compound interest, but at today's interest rate it would take years for them to earn a dollar.   Since Meagan has more responsiblities, we wanted her to get more of an allowance.

So to satisfy our requirements, here is the plan we have come up with.

• We started each with $100
• They can deposit any gifts (from grandpa etc) to the account.
• Meagan get $15 a month allowance,  Grant gets $10 a month allowance
• Each kid gets 10% interest each month.

It is the 10% interest that I use to try to teach them about compounding interest.    When they want to spend $20,  I tell them in 7 months that would  be worth $40.       They are a little bit confused by it, but I think they are getting it...

The kids also like to compete.     When someone want cash instead of the money deposited into their account, their sibling will taunt them that they are going to have more money..

We will see how long this all goes, at 10% interest a month, they could break me in a couple of years..