I'm not sure how much stuff you get your kid now but I think the money should be his to buy in addition to that. So we don't buy our kids toys outside of Birthdays or Christmas so I would have them use that money for toys outside of that period. I don't think making him pay for birthday parties or any necessities yet makes sense.
I would set up two savings accounts for him. One is an RESp or the like and take 20% of his money and put it in there. Teach saving for the future right from the start the same way you save for retirement off of every check. Make it a habit that 20% is saved for the future. The second account would be for larger planned things. So if he wants a $100 Lego set or a play station or something along those lines. Id say half of the money should be saved for planned things he wants. The goal to be getting him to think about saving the same way you would for vacations, bikes etc. the remains 30% let him spend how he wants without any judgment. If it's hookers and blow its hookers and blow
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