Hey Friends, Today I want to chat with you about allowance and show you how to set up your own system.
We’ve been giving our kids a steady allowance since the beginning of the year and it has worked out great! Our kids’ ages are 6, 8, and 12.
Now I wasn’t always a believer in giving allowance to kids. One of the reasons was I didn’t want my kids to earn money from doing chores they should do anyway. Once I thought about it more and really defined it for myself and what it would look like for my kids, and what they’d do to earn money, then I was on board.
Our kids have set chores they have to do no matter what, and then they have “little jobs” or tasks they can complete earning their allowance.
Ok, let me break it down for you and show you how to set up your own system.
Where to start with chores vs. allowance based tasks.
Depending on your kid’s age, you want to assign age-appropriate chores for them to complete daily. Daily chores can be: make their bed, brush teeth, get dressed, pick up their room, clean up toys, homework, etc.
Then you can determine what tasks, based on their age, your child can complete once, twice, three times a week to earn their allowance.
Tasks up for pay can be: mow the lawn, help fold the laundry, vacuum, wash the car, take out the trash, help clean the counters, unload the dishwasher, dishes, sweep the floor, etc.
If you need a Free Printable Chore Chart, I can send you one!
How much money should kids earn in exchange for tasks?
As the parent, you really have to determine what amount you think is right based on their age and also what you can afford.
Keep in mind, I think it’s important not to overpay! Here’s an article by thebalance.com that breaks down the numbers vs. age.
*My recommendation for kids between the age of 5-10 not to get paid more than $5 – $8 dollars a week.
For example, our oldest has the ability (in the warmer months) to earn extra money from mowing the lawn, washing our cars or vacuuming the inside.
These are all jobs that could potentially be outsourced.
Determine what day is Payday!
Our payday is on Saturday. What I like about Saturday is it gives our kids money in their wallets when we’re out.
This came with a little bit of a learning curve because they wanted to get paid right when they completed a task. It was like, “ok I vacuumed the whole house, can I get paid now!?!”
I explained that in most cases you don’t get paid right after you do your job that day. You have to wait till payday!
What are the benefits of giving your kids an allowance?
I think one of the biggest lessons is our children are learning the value of a dollar! And that you have to produce some sort of work to earn money.
We also have them put $1 into their savings envelope. Their savings envelope gets them in the habit of putting money into their savings account.
Also, our kids are learning to budget their money. If they spend it all on Saturday at the store…then it’s a long way to wait till next Saturday.
Not spending all your money at once has been a really good lesson for our kids. I’ve noticed our kids putting toys back at the store because they don’t want to use all their money!
I’ve also noticed a sense of pride they get when they are pulling out their money at the register and paying with the money they’ve earned.
The cons of giving your kids an allowance!
The two major cons I see with giving your kids an allowance are, not holding them accountable and paying too much!
The accountability thing is huge! If you still give your kid(s) allowance without them completing their tasks then it defeats the purpose. As the parent, you have to make sure you are consistent
with reminding them about their tasks and paying them on time.
In conclusion, I think giving your kids an allowance is a great idea and you are helping to teach them about money while they are young.
Let’s recap what you need to set up a successful chore & allowance based system.
- Determine age appropriate chores (required to do with no pay) and tasks (what they’ll be paid for).
- Fill in an easy to use Chore Chart! (Free download)
- Determine how much money they can earn.
- Pick what day is Payday.
- Be consistent!
Let me know in the comments if you give allowance?