Not everyone talks to their kids about doing chores for money. If there’s one good thing that’s come from the pandemic and talk of a recession, is that parents have really stepped up the game when it comes to discussing finances with their children. If you think it’s time to start paying an allowance, make sure you do the research before you ask your kids to do chores for money. The impact could last a lifetime.
1. Why Pay An Allowance?
To many, doing chores for money, or giving a traditional allowance, is a right of passage. At one point or another, we may have all had an allowance from our parents. But times have changed. Doing chores for money isn’t always the best way. Sure, there is plenty to do around the house, but giving money to children is more than a weekly payment for keeping up with their tasks. It’s a great learning tool.
When it comes down to it, an allowance is just a way for children and young people to learn about money through their own successes and failures. By default, children don’t have money and there are really few ways they can bring in cash without parents handing it to them. So before they’re old enough to get a job, it’s up to the parents to help foster their first experiences with cash and change. Having their own money teaches them simple but important life skills like spending and saving.
2. Who Should Do Chores for Money?
The most important question to ask yourself isn’t how much, but whether or not paying money should be tied to doing chores. There are two schools of thought:
- Having a child do chores for money helps kids learn how to earn their money, like in a real job. They do the action of a chore and get money in return. Earning an income fosters responsibility and reinforces the value of work.
- On the other hand, some parents believe that household chores are the responsibility of every single person in the family. They believe that allowance should be separated from chores and instead, an allowance can be used as a tool to teach financial values and habits in a healthy way.
Whichever route your family takes when assigning chores for money, it’s important to teach kids financial wellness and good habits in a simple way. Clearly spell out your expectations with the money, teach them to budget and save wisely, help them create a way to save with a piggy bank or an account, and only teach valuable positive money habits.
READ MORE: Should you allow allowance?
READ MORE: Banking For Kids: 3 Simple Steps For Success
3. Chores for Money – Now What?
So what chores to do for money, you ask? Well, chores for 15-year-olds to earn money are going to be quite different than chores for 9-year-olds to earn money. The skills and patience are very different between the ages, and it also depends highly on the child.
Starting young, children with lower attention spans, and less skills may like vacuuming or mopping, and be required to clean up their dinner plate. They may even be able to begin learning how to fold clothes and feed the dog. For an older child, walking the dog, washing the car, and doing their own laundry themselves could all be perfectly acceptable.
READ MORE: The Importance of Teaching Girls Money Confidence
Regardless of what chores you decide on handing out for money, make sure expectations are clearly set, let them learn from their mistakes, and support them through the process. Remember, having an allowance is about learning.
Not every family utilizes an allowance. Chores for money is a concept, only some use. So take the time you need to make sure you’re making the best decision for your family and yourself.
WANT TO READ MORE?
Check out Daily Mom’s article on 7 Simple Accounting Basics Everyone Should Know.
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