Why This Mom Charges Her 5-Year-Old Rent

For all the savings bonds and piggy banks your kid has accumulated since birth, how much do they actually know about how money works? One mom wants to make sure her 5-year-old understands the basics, and announced something jaw-dropping on Facebook: She charges her rent.

Think of it like allowance, but with a catch. According to Essence Evans, she gives her daughter $7 each week, but deducts a total of $5 for various bills. At the end of each week, her daughter has $2 to spend on…whatever a 5-year-old would spend money on.

“I explained to her that in the real world most people spend most of their paycheck on bills with little to spend on themselves, so I make her give me $5 dollars back,” Evans says. “$1 for rent, $1 for water, $1 for electricity, $1 for cable and $1 for food. The other $2 she gets to save or do what she wants with.”

In addition to teaching her daughter a lesson about earning and spending, Evans has another trick up her sleeve:

“Now, what she doesn’t know is the $5 is actually going away in her savings account which I will give back to her when she turns 18. So if she decides to move out on her own she will have $3,380 to start off.”

Parents on Facebook really liked this idea; the comments section is full of users tagging their partners, adding, “We should do this.”

Others chimed in with additional financial advice:

“You should probably invest that money, even at a low percentage, to try and keep up with inflation,” one user commented. “By the time she moves out in perhaps 13 years, $3,380 won’t be the same as what it’s worth now.”

While this plan is well-intentioned, what remains to be seen is whether or not it’s sustainable. Will the little girl accept a $2 allowance profit when she’s, say, 15? To start planning for savings down the road, you’ll want to consider some of the creative ways parents save money when their children are young. And to save money on baby gear right now, head over to our deals and offers page.