Giving your kids money for nothing does not work. Allowing your children to earn what they spend works every time. The sooner a child understands that money is earned the sooner they will become self-sufficient.
Determine how much you spend on your child per month for “non-necessities” things like candy, toys, games, videos, CDs, etc. Think of these as WANTS, rather than NEEDS. Start with that amount and allow your child to earn it.
Example: Let’s say you spend about $40 per month on WANTS. Start with $40, and then divide that by 4-weeks, you get $10. Now, divide that by 7 days. You get $1.43.
That’s about $1.45 you are currently spending for “no-necessities”. Round the cents and pay your child that amount a-day. You won’t spend any more than you are already spending each month, but your child will learn the value of earned income, rather than Free Money.
Choose the chores, jobs, or a simple task that you would like your child to do. (Our really cool allowance chart comes with over 60 jobs to choose from.)
Assign a value to each task, 5¢, 10¢, 25¢… $1.00, you decide. For example, you might determine that taking out the trash is worth 25¢, while cleaning up poop is worth 50¢.
Just remember, the goal is to give your child a chance to earn an income so they start using their money instead of yours.
Introduce the chores you will pay your child to complete each day. Explain they will be earning valuable money each time they do a chore on the list.
Positive reinforcement: Your child should look forward to completing the chores on his or her list each day, without being asked. This encourages personal responsibility.
You might decide to give one reminder or none at all. The goal is for each chore to be completed each day.
Chores that aren’t completed get “no” pay.
This puts the responsibility of doing what is asked on your child and if they choose not to do it, they lose. This teaches your child there are consequences for every action (or inaction.)
The lesson will take effect when your child wants to purchase something and they do not have enough money.
Encourage your child to set goals and make plans. Creating goals and setting a plan for your money is extremely important.
At the end of each week, you and your child should add up how much money they have earned. This shows how money grows and easily demonstrates why “It’s Only a Dollar…Until You Add To It.
Younger children may need to be paid on a daily basis until they get accustomed to waiting for payday!
In Conclusion, while shopping, if your child asks for something, have him or her spend he money they have earned to purchase the items they want. This quickly teaches the value of money.
Children will place a greater value on items bought with their own money, versus your money, and think twice before spending foolishly!
Never let your kids spend the whole dollar!
Now that they are earning money, you must then teach them what to do with that money. The sooner your child applies this, the better. Set your kids on the road to wealth by teaching them the 10/10/10/70 concept.
Check out our calendar style allowance chart, which is sure to make your life easier. Allowance Chart