Paying Kids for Chores

Dec 14

Giving your child an allowance (paying them to do chores) can be an important tool for teaching them about money management and budgeting. It can also help them learn how to make decisions about how to spend and save their money. Additionally, an allowance can give children a sense of independence and responsibility. It's important to keep in mind, however, that the amount of allowance and the way it is given should be based on the child's age and maturity level.

You can get the most out of giving your kid an allowance by doing the following:

Help them set up a goal: this motivates them and gives them something to work towards that makes delaying their gratification of spending he money worthwhile. Check out how to set S.M.AR.T goals here.
Make sure they are tracking their savings and spendings: they should be consistently, probably on a weekly basis, tracking their savings and spendings (although hopefully there aren’t any spendings). Check out this Dry Erase Savings Tracker (see below as well).
Celebrate: When they reach their goal make sure you are involved in helping them purchase that exciting thing that they created their goal around.
Repeat steps 1-3: Now it’s time to set up the next goal and start saving for something else.

Imagine they do this between the ages of 10-15 under your guidance. Imagine how much they will be able to achieve for the rest of their life with this structure naturally apart of how they carry on.