We all want what’s best for our kids so that they grow up to be self-sufficient with a good head on their shoulders. Our kids are now 6 and 8 years old. When they were little, they would occasionally receive a little money as a gift and they might put it in their little bank or their real bank savings account which made next to zero percent interest, or they might even lose it. It just wasn’t organized and we didn’t give it too much thought.
After we took Dave Ramsey’s Financial Peace University class last year, we got serious with our children earning money and keeping track of it. We closely follow what the class taught. At the time, our kids were 5 and 7 and we thought they would be able to do certain chores at home to earn their “commission” as Dave Ramsey calls it. He doesn’t believe we should make “allowances” for kids, but they should get paid for when they actually work, just as adults do. After much thought, we decided on assigning them each 5 different chores, the same chores each day. Once it is completed each day, they earn a check mark. Each completed job is equal to 10 cents. A completed week (7 days) would equal $3.50. HOWEVER, if they actually do all 35 chores for the week, they get a BONUS and the total is $5.00. If they miss just one chore for the week, they earn $3.40.
When we started this, we were in the process of moving and trying to sell our house, which meant keeping it picture perfect clean so perspective buyers could come through at a moment’s notice. We were all encouraged to have it spotless each morning when we left for school and work. Their jobs include things like making the bed, cleaning up toys, cleaning up clothes, feeding the cat, setting the table, and cleaning up the table after meals. Each of our kids’ charts are a little bit different. About half the time, they earn their full $5 and sometimes they earn around $3.20 when they forget to do a couple chores.
As Dave Ramsey suggests, they have envelopes to separate and organize the money that they earn: Spend (toys, candy, Webkinz, etc.), Save (for something big in the future - our son has already saved enough for a ticket to an Indianapolis Colts game), Donate (church, various community or worldy causes, things like Operation Christmas Child), Gifts (mainly for other family members), Car (I’ve encouraged our son to begin saving for a car when he can drive in 8 years - so far he has $36). We don’t strictly tell them which envelope to put their money in each week, but we strongly encourage them to divide it up so they will have money in the different areas.
We have really enjoyed this whole system. Before, we rarely bought them things like toys when we were out, but now they especially know not to ask or beg for something. They know they can buy it on their own if they really want it and we encourage them to think carefully about each purchase, especially those more than around $10.
The Book Fair was recently at school and we decided to give the kids each $7 to spend however they like and they could add their own money to purchase more than that. Our daughter had just assumed she would use only her own money to make purchases and when I told her we would give her $7 for books, she was incredibly excited and gave me a giant hug. She is not taking that extra money for granted. She spent it very carefully at the book fair, adding $5 of her own money to purchase two nice books for herself.
The kids definitely get more things for themselves this way, we get a cleaner house, and most importantly they are learning very important lessons that will help them immensely in life..
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Written by Laura on November 6, 2008
