Okay, in the previous post we discussed chores your children do get paid for and chores they don’t…now how do you pay them and help them manage their money?
Make sure the amount you pay is reasonable for the job done. Just because lil’ David NEEDS $50 for a video game he wants doesn’t mean you give him $50 for just sweeping out the garage when it’s really only worth $10.
1. Assign a dollar amount for each task
2. Have a specific pay day, pay on time, pay with cash
3. Take money away for a job not well done, misbehavior at home or at school, but be fair, have a rules set up ahead of time.
You can make this fun in so many ways! Use chore charts posted on the refrigerator, have a ritual for payday. Make sure you tell your kids how proud you are of them and what a good job they do! One mistake parents make is take over if it’s not being done the way it should. Johnnie will never learn how to clean the bathroom correctly, if you keep doing it for him. If a chore isn’t done correctly, show them how to do it right, then let them do it until it is right. Don’t take over.
The Envelope System – an ancient Chinese secret….
Paying with cash lets them ‘see’ their profit and is a great motivator. Teach them to have an envelope system – have them label 3 envelopes saving, spending, giving:
Teach your kids the importance of giving and helping others who are less fortunate. They can adopt a child, give at the local food pantry, give in church, etc. This teaches them to care about others, not just themselves
Teach them to always save something – 20%; at minimum 10% – not saving is NEVER an option. The earlier you start with practice the better. Saving becomes a way of life for them.
Also, your children should have their own bank accounts so this money can be deposited and they can learn how to handle bank transactions. Take them to the bank, prep them on how to interact professionally with the banker and help them make their first couple of deposits. From then on, they should be responsible for completing their own transactions. Now, I don’t suggest online phone apps for anyone under 17, also make sure they don’t save their passwords in case their phones are stolen. Kids lose phones so much, you don’t want anyone to have access to their account information.
It’s okay for them to spend, it may be tempting not to, but let them buy whatever they want – offer some guidance and common sense help, but they did work for this money and already gave and saved some.
There you have it, put your kids ahead of the game by teaching them these money skills early -you work, you get paid and be smart with the money you earn!
How did you learn about money as a kid? Did you get paid for chores?