Problem: I need my kids to learn how to use money, but also how to earn money.
Allowance. Just the word strikes fear into the hearts of many. You don’t have enough money, your kids spend it on the wrong things, you aren’t getting any work for the money you give out.
If you liked this post, be sure to check out my post about my course Family Routines:
Any of those ring true for you?
Allowance is something I have thought long and hard about. In my own family we got money just for being a part of the family. Yes, we had jobs we were expected to do (and as far as I remember I think we did them) but we just got 5 bucks (or whatever) every week.
But, my kids are growing up in a society that just doesn’t understand money, nor does it teach it in a way that I think it correct. I NEEDED my kids to know how much money it takes to run a life and how to earn it.
And frankly, we’re not doing so hot.
You can read my full system here on my allowance post, but a brief overview:
1. Each of my boys (I will probably start Paige with this in the next year or so) earn a set amount for each of the chores they are required to perform each day.
2. They earn the money not for DOING the chore, but for doing it before they play, and without being asked.
3. The chores aren’t anything crazy, and pay also isn’t that great either. It’s things like putting your school items away, homework and practice, doing your job, cleaning your room.
4. If they get 90% of their jobs done they double their allowance. I want to pay BIG for consistancy. This rarely happens. Sadly.
5. We use a check register for most of their money. I don’t like them having a ton of cash around. But, they are free to withdrawl from this account whenever. I tend to keep 10-20 bucks in small bills on hand for withdrawls.
My ❤️ hotels for your 2024 trip:
– Best Western Park Place — it’s the CLOSEST hotel, has a breakfast and if it’s available for your dates, BOOK IT. If not, check out the Tropicana.
– Cambria – this is my favorite one with a great price point for larger groups – has a water park and free breakfast (not walkable though) – but if you want a walkable suite check out Castle Inn
6. They {and here’s the kicker} are required to pay for EVERYTHING with this money. I do kick in a bit for education here and there, but most of their life is funded by themselves. Clothes, recreation, treats at school — it’s all on them.
If they doubled a few times/month they would have PLENTY of money to cover #6. Let’s say, they don’t… and they’re paying for it.
I feel like this system has a few benefits:
1. They are learning how much stuff costs.
2. They are learning they have to do stuff to get money
3. Our kids have learned a love for Goodwill because that’s all they can afford due to their lack of detail… sad, but true. However, Goodwill has been our store of choice for quite a while thanks to Graduate School. So it is likely that they’d still shop there a bit even if they had a lot of money (because they’d rather go to the movies than wear a brand new brand name shirt).
Anyway, that’s what we do. Each week they sign off and on Saturday we have payday. In looking at this week’s sign-off (to give you an idea) I see 3 checkmarks. All from the younger of the 2. The oldest will get no money this week if he keeps this up, and that’s how life works.
The reality is that he got a lot of clothes for Christmas and we provide the necessities such as food and basics. I sometimes will grab an article of clothing I see on sale as a gift for them. They appreciate it more because they know how much clothes cost, and that’s something they won’t have to buy.
What do you do for allowance? I am always tweaking my system. Tell me more!
Havok says
I had a chart, and multiple things I had to do each day (dishes, make the bed, set the table, feed the cat) – all simple things, but if just about everything wasn’t checked off for a week, no allowance for me. My parents didn’t hold onto it for me, though, it was mine to do with what I wished – and once it was gone, it was gone. I got school supplies, and birthday and Christmas presents, but that was it. If I wanted something else during th erest of the year, I had to use my own money for it.
I think, though, it would have worked better if I had more expensive tastes as a kid, and had learned to save up for a larger ticket item. But most of what I got was craft stuff from Michael’s or new DVDs or CDs (on the cheap), so saving it never turned into a lesson until I was older.
Hilary says
Haha, my life would’ve been better if I had more expensive taste. 🙂 I can’t imagine that’s what I want for my kids — but I do get what you mean. 🙂
Laura @ Little Bits of Granola says
We are just starting to have these conversations (our oldest is 3). The thing I struggle with is how do you differentiate between things that are simply part of being part of the family and working together as a team (like cleaning up after themselves) and things that are “extra” and that they can earn money for? I don’t feel like my kids should get to be paid for cleaning up after themselves. I feel that doing so is simply respectful to the rest of the family and part of all of us working together. Maybe I am over-complicating things though, because in the end the important thing is that they learn responsibility both with getting their jobs done and with handling their money!
Hilary says
I am sure i overcomplicate it — but I am VERY clear that they are being paid for doing it on their own without me asking, not just for doing the job….
Laura @ Little Bits of Granola says
That is a great approach! It has the added benefit of teaching them that they need to take the initiative to get it done on their own rather than wait for someone to tell them (or hope no one will tell them!)
Hilary says
In other news, no one earned allowance last week. 🙂
Esther - sewpollyesther says
I’ve started putting a tiny bit £5/month away in our girls (2, 5 and 6) bank accounts each week, they are only vaguely aware of it but it means when they really really want something they will have a bit of money they can spend. Birthday and Christmas money goes in here too.
They have daily tasks that they are expected to do (getting ready for school, reading, making beds, laying the table etc.) and we’re introducing weekly tasks (responsibility for keeping one area clean in the house, helping with dinner one night per week, a load of washing, emptying the dishwasher) gradually at the moment, 2 for for 2 year old, 5 for the 5 year old and 6 for the 6 year old.
If they want to earn extra allowance they can ask and I will set them extra tasks, usually off my own list :p and I pay reasonably well for that. But they need to have done their regular tasks first.
Hilary says
I think any way you find to let kids figure out spending money as well as earning money is a great start!