We do not give our children allowance because we believe money should be rightfully earned. Now before you think my kids have to earn every single cent for their living, allow me to say that we do give them pocket money to school because that is a necessity. As for toys, sorry, that’s definitely not a necessity. So they will have to earn and save before they can even think of getting a toy.
My 4-year-old recently wanted a mini-cooper look-alike toy car that cost $27.50 I told him to come home and count his savings. He didn’t have that much. So I told him he can earn and save $20 and I can top up the rest for him. Him being so young, I didn’t want to work him too hard, you know what I mean?
So how do they earn?
The simplest form of earning in our house is through doing common house chores like wiping table and shelf surfaces, taking out the garbage, watering house plants, etc. And I pay them really little. I don’t want them to think money is easy to earn because it isn’t. For each job, I only pay them 20 to 50 cents.
And for personal house chores like making their beds, clearing their plates after a meal, etc they are definitely NOT being paid. It’s a personal responsibility. There is no way I am going to pay them to do it. They have to, no matter what.
So what does working teach kids?
- That earning money takes time
- That working is hard work
- Goal Setting
So how do they save?
They each have their own piggy bank. They’re unique in size and design. They have their own preferences. All the money they earn from housework goes into the piggy bank and so does the leftover pocket money that they bring to school everyday. I give them $2 per day, and their recess food usually cost $1.50 so everyday they should be able to save 50 cents if they do not buy knick knacks from the school book shop.