Comments on: Teach Kids Money: Tying Chores & Allowances

By: jeff

jeff — Fri, 19 Feb 2010 08:34:40 +0000

Am I wrong here?

By: jeff

jeff — Fri, 19 Feb 2010 08:33:56 +0000

Teach your kids some real economics. They work for some money that is printed with no real backing and out of thin air. They pay back the lender at interest on tax day. The lender reduces the value of their earned income then loans them back more money that is worth less and they work harder for less of it.

Some kids figure it out and just deal drugs for cash or go try to make a quick buck on Wall Street.

By: lchadder

lchadder — Thu, 26 Nov 2009 06:56:44 +0000

Allotting chores to kids, according to their age, makes them responsible, and also teaches them the value of time and money at a very young age.
My kids are 7 and 3. When it came to chores, I just browsed the net and found some chore charts (my kids liked the designs in the website kidrewardzone). We filled up the chores and columns to mark a star in each chore. There is a minus for each negative behavior, like tantrums, not using dustbins for trash, and so on. They would get bucks for each star minus each negative mark. A trip to the park on Saturday, if BOTH get all the stars (here I don’t count the negatives)for the week. Now, there are no arguments, yelling, and shouting. Its only “YAAAAYYY…”

By: lee l

lee l — Sun, 22 Nov 2009 08:10:56 +0000

We have a 9 yr old and a nearly 4 year old.
Recently we have started to tie “jobs” around the house to pocket money (as we call it in Australia), as a way to teach our 9 yr old daughter to value the money and to be more thoughtful with how she spends it, as we were finding she was being quite friviolous with spening money she was just “given”. It is amazing the difference in her attitude when it comes to spending her own money that she had to do some work to get!
We also do a “split” on her money in that she has two money boxes, one to go into her savings account and then one she has easy access to for spending. She also donates money for fundraisers at her school.
Let me say though that I purchase all my daughters clothes, school supplies, and everything else she needs – but if she wants something over and beyond she is required to use her own money. It is amazing the extra though she puts into deciding to buy!
BUT she is also required to do jobs that are not linked at all to pocket money, and it is amazing that since chaning our system slightly to encourage her earning her pocket money, she is displaying more responsibility in her general behaviour and doing things on initiative as well (“unpaid”) – which is wonderful to see!

By: Patrick

Patrick — Fri, 30 Oct 2009 00:29:28 +0000

A lot of what people know are based off of what our parents taught us. My parents lived frugal and I live in a similar manner. This is not always the case, but more likely than not they will at least learn small money lessons like these.

By: Dr. Jimmy

Dr. Jimmy — Thu, 29 Oct 2009 02:05:02 +0000

An allowance is given because the child doesn’t work. He is dependent on the parent for his basic needs and more importantly his dignity. It should never be tied to chores or any other performance. It is freely granted the child regardless of his behavior.

Teaching the priniciples of saving or giving can be easily taught using the money included in an unconditional allowance just like it can using money the child earns by doing jobs that are above and beyond daily chores. Chores instill family values and responsibility and should never be tied to money.

If a child has an allowance and he learns to manage it correctly he will never be embarrassed when his friends stop in front of a snack machine by not having some money on him. He also learns that he can have extra money if he’s willing to work for it, over and above his responsibilities to the family.

Every parent I have given this advice to has offered very positive outcomes reporting that their child’s self-esteem had grown along with their empathy for others.

By: Jason @ One Money Design

Jason @ One Money Design — Wed, 28 Oct 2009 01:25:37 +0000

I think the Give, Save and Spend banks are an excellent approach. There are values that can be taught within each area that are essential to managing money wisely. Personally, I think it’s a good idea to pay a child for work or chores performed around the house. The value of working to earn is important for a child to understand, mainly as they mature, but helpful to learn early.

I really enjoyed your post and am looking forward to starting my Ava on the G,S,S banks as she turns 5 this next year.

By: Honey

Honey — Tue, 27 Oct 2009 21:37:50 +0000

To deal with the valid issues raised in the previous comments, as children get older you can start “charging” them for the things that you provide (food, shelter, etc.) and arrange the math so that if the chores are done, there is a surplus (allowance) and if the chores are not done, there is a deficit (bill).

Then not only is the child learning how to handle money responsibly, s/he’s learning that these things do not come for free.

By: Joy

Joy — Tue, 27 Oct 2009 18:06:34 +0000

I agree with the comment above. While Danny’s argument is well thought out and his budgeting values are solid, there is the very real possibility that he may be teaching his children to work only when they are paid. There may come a time when he can’t pay them for work they need to do to contribute to the family’s well-being and they may not feel motivated to do it. As they grow more independent and, as teens, perhaps earn their own money, they may feel that they don’t have to do the routine chores of home since they don’t need the allowance. Chores are part of a commitment to family life, everyone participates, everyone works, everyone benefits. Danny probably doesn’t get paid for taking out the trash, either. Some stuff you just do because it is expected.

By: zapeta

zapeta — Tue, 27 Oct 2009 17:19:12 +0000

When I have kids, I plan on giving them an allowance so they can learn about handling money but I’m not going to tie it to chores they are expected to do. I don’t want them to think they can get out of their chores if they don’t care about the money. In addition, I’d want to be able to take away the allowance if necessary and not have to explain why they still need to do their chores.