Monday, August 4, 2008

Chores and Money Management

Okay, spawned by a discussion I had this afternoon with some ladies, I am asking this question to a wider group to get more feedback.

Up until now, I have followed Kevin Leman's idea on giving kids an allowance. Each week they get an allowance in which the dollar amount is the same as their age. (e.g. an 8 year old gets $8). Out of that comes savings and tithing. The rest is for them to spend.

My sis in law says that giving a set allowance is "Mommy Welfare" because no matter how much they work, they still get the same amount. She has been telling me about this program by David Ramsey called Financial Peace, Jr (they have a homeschool curriculum). It is where the kids get paid by the chore. The more work they do, the more money they earn. She sent it to me last week and we are trying to implement it in our home. My problem with this method is that the kids won't do anything around the house if they aren't paid. (I can assure you that issue is addressed with the kids with this program. According to this program, the children still have to do chores that they are not paid for because they must contribute to the household. The whole point of the program is to teach children how to manage their money and not go into debt.) When I mentioned it to a group of moms this afternoon, I felt that this method is looked down upon and it's making me question what to do.

Also in the last week, I received my copy of Managers of their Homes and Managers of their Chores by Teri Maxwell. (Excellent reading!)

What I want to know is what others are doing so far as teaching their children financial responsibility in this time in our country of debtful living.

Furthermore, I would like to know what systems others are using to be sure that all the children in the house are contributing as far as keeping the house running.

Is there a way to get the kids to do their chores without the monetary gain, and yet have them earn money so they can learn to manage it?


Anonymous said...

At our house, we use the money to age ratio idea but also have extra jobs that can be done for more payment, beyond regular chores: ironing, mending, shining shoes, etc.
This seems to work for us.
The 'automatic' jobs (like dishes, laundry, garbage, etc.) are paid for by the allowance and the 'extra' or voluntary chores are rewarded with extra money. (Though... if the ironing or mending does pile up, the kids do get a hint!)
In addition to this, if they help with a garden or building project, Dad decides a set amount for doing a certain part of the job (to completion.)

This works for us.

HeatherAnne said...

I love these ideas...I actually have Dave Ramsey's finanical kit for kids. :) It is so important to teach good stewardship at a young age. Thanks for sharing, Patti!