Last night we discussed money around the dinner table. More specifically, we talked about setting up a weekly allowance for each of our children. Daughter is seven and Son is 4. Up until recently, what they got for Christmas and birthdays covered what they wanted at the toy store throughout the year. Unfortunately, as they get older, the toys become more expensive. This was, ultimately, the reason for the allowance discussion.
I think allowances are great. I think a regular allowance teaches children how to save and manage money. Allowances are a great way to teach children about living on a cash-only system early, before the mistakes take several years to pay off.
I do have a couple of reservations.
I don’t want to encourage my children to adopt a welfare mentality.
I’m not knocking welfare. There were times in our marriage when we were very glad for any government assistance to help us get through tough times. We never expected the money to just ‘show up’ though. We knew we needed to work to make a living.
I want to make sure my children understand that money is the reward for working hard, rather than a basic human right.
Which brings me to my second reservation.
I don’t want my children to see money as a reward for doing things that are a natural part of being a family.
I don’t ever want to pay my kids for cleaning their room. Having a clean room is a basic part of being family. Taking your dishes to the kitchen after dinner is a part of living in a family. Picking up after your self is part of living in a family.
I don’t want my kids to feel they should get paid to do the little things that make ‘family’ work.
What we decided.
We decided to assign a monetary value to things we thought were above the basic expectation of being part of the family for each child, based on their age. Each child can earn up to $5 a week if they complete all the tasks on their list.
Let me give you an example. Putting your laundry in the laundry basket and helping forgetful family members do the same is a natural part of being family. Folding the towels, on the other hand, is something a seven-year-old can do, but wouldn’t be a regular expectation for her age. Sorting the laundry by color and type is something my four-year-old son can do, but it wouldn’t be a regular expectation for someone his age. So, if they do those tasks, my kids would earn $1 to $2 dollars, based on difficulty and age.
We’re just staring this allowance thing, so I will let you know how it goes. I am curious to know what you do in your household to teach your kids about money. Don’t hesitate to let us know in the comments.
{ 4 comments… read them below or add one }
That is a great idea. I remember not wanting to clean my room as a child cause there was no monetary incentive. I know mom and dad did their best and I agree that an allowance teaches more about spending/using money then just xmas and b-day money can provide. It teaches saving if you don't allow advances :-p As an adult I don't get money for cleaning my house or doing my laundry, it is something I've learned is part of leading a healthy life, maybe communicating these ideals(I have no clue how to do so just saying) is just as important. It sounds like you are though with not rewarding behavior that is just part of being family
Remember we used to get Star Trek cards for doing things outside our normal chores on top of our normal allowance. I always wondered myself how I would do it better and this seems like a good way to go.
Yeah, I loved the Star Trek cards. That worked well. It was definitely more of a reward. I think it will work once my kids develop a strong affinity for a particular hobby.
Hey Paul. Hudson has had an allowance of $3 a week (soon to be $4 when he turns 4). Like you, we expect him to do the things that involves being in a family, so we don't pay Hudson for chores. We want him to learn how to manage money, so we feel it's important to give him an allowance. We let him decorate 3 different wooden boxes from Michael's craft store. He tithes $0.30, in a box, he saves $1.50 in a savings box, and he gets to put $1.20 in his spending box. You'd be surprised how quickly $3 a week adds up!! I have loved doing this with Hudson.
That's neat, Marcy! Thanks for sharing!