Ask Crystal: Do you give your kids an allowance?

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Do you give your child benefits before he is old enough to get a job in his teens? How do you teach your child to give/use/save to your child? – British Charlotte

Hello, Charlotte! I love thinking intentionally about how to guide your child into money management, even before you’re old enough to get a job. This is also really important to our family.

As parents, one of our greatest hopes is to prepare our children with skills that will help them for the rest of their lives. And one of the most important life skills we can give them? How to manage your money wisely.

So yes, we give the kids money in front They are old enough to do traditional jobs. But instead of regular allowances, we use a chore-based system that helps teach both the value of the job and how to manage your money well.

Let me break it down for you…

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Our Chore & Money System: Paid and Unpaid odds

When our old three were little, we created a two-tier chore system in our home: Unpaid odds and Paid odds.

• Unpaid odds It is the daily responsibility that comes with being part of our family team. Keep your room clean, help with laundry, or vacuum it. These are expected and not paid.
• Paid odds Once the kids have completed their unpaid chores, it’s an extra opportunity for them to opt for. These include car scrubs, organizing your closet, and cleaning your bathroom.

We chose this system Reward Initiatives and Effortsnot a qualification. Our kids know that money is not offered free. Like the real world, it is gained through effort.

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Why do we pay our children for housework?

Here are four major reasons why we decided to pay for our kids to do chores:

1. Encourage a strong work ethic

I am very grateful for the work ethic that my parents have instilled in me – and I would like to give that same gift to my children. When our kids take initiatives to make money by doing paid chores, they learn that efforts bring rewards. They also learn to stick to the job until it does well. This is an invaluable lesson that goes far beyond household chores.

2. Teaching real life money skills

From around 3-4 years old to 4 o’clock, we start to give them a small opportunity to make money and manage. Whether it brings your own money to the store or chooses about what to save, they are learning real-world financial skills that will help them for years to come.

When we’re shopping, they can bring their own expenses and use it (for a reason!). This will help them learn valuable money management skills and gimme An attitude that can be seen immediately when shopping. If the child sees what they want and asks me if we can buy it, my response is always, “Did you bring some money?”

We have had so many great learning moments from simple circumstances. Like when they forget their money and can’t buy something, or when they hand over their dollar bills to the cashier to regain the change. These small experiences lead to greater economic confidence over time.

3. To make them make a $3 mistake

It helps us develop critical thinking and discernment, such as making small money mistakes now and spending money on cheap toys that break in two days. I want to learn more from today’s $3 mistake than from the $3,000 mistake in my 20s.

We don’t microcontrol their spending. If they ask for input, we will give it. But in many cases we retreat and let them understand that. It opens up such a great conversation about decision-making, value, and delayed satisfaction.

4. Encourage generosity

We talk a lot about giving at home. Our kids put aside some of what they earn – whether it’s a Christmas kids box, goat, chicken, or a clean water project for families abroad. Watching their minds grow generously is one of the most beautiful parts of this journey.

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How to teach, use and save money on giving to your children

Once they start earning, we encourage our kids to split their money into three main categories.

• give: We encourage children to put aside some of the money to give to their local churches and encourage the causes they are passionate about.
• keep: We encourage them to set savings goals – sometimes for larger items, sometimes just for building habits.
• spend: This is their fun money – they can decide how to use it (for reasons!).

Over time, they begin to see the value of each category. They feel joy of giving, force of preservation, and Freedom wisely spending. It’s very rewarding to watch!

To further encourage you, read this post on 4 ways to teach your child’s money management.

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Just don’t tell them – show them

One of the biggest keys of this is modeling. We hear our kids talk about budgeting, saving, cash payments, and content selection. They are waiting for us to make our purchases and compare prices.

I often say: More people are caught than they are taught.

We can talk about money all day, but if our lives don’t reflect what we’re saying, it won’t stick. So we invite them into the process – we explain the “why” behind our financial decisions and give them a front row seat to what it looks like to manage money with purpose.

Talk to them about how you set your budget. Show them what works for you. Bring them when you go to the bank. Explain why you chose not to use a credit card, why you pay in cash, or why you would like to buy a used car.

Please give me more encouragement and read my posts on six things my granddad has taught me about financial success.

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Some final encouragement

If you’re just starting out, here are some things I recommend you try:

• Set up a great example. Have your child see your intentional financial choices.
• Talk openly about money. Bring them into age-appropriate conversations.
• Help them set up a simple budget. You can use cache envelopes, spreadsheets, or apps like those that require a budget.
• Give them room to learn. Let them make mistakes – that’s part of the process!

Giving children experience in managing money before they are old enough for work is about dollars and cents, as well as stewardship, discipline, generosity, and setting them up for a life of wise decision making.

I’d like to hear what this looks like in your home, or the ideas you tried worked (or didn’t!). Parenting is a journey and we are all learning to go.

Related Posts:

• Why don’t we pay everything for our kids?
• 25 teenagers’ summer jobs
• Stop waiting for your child to talk about money

Source: Money Saving Mom® – moneysavingmom.com