We have debated for a long time if we should give money for routine family chores or not. It finally came down to 1. we want to teach them about money and they need money to do that and 2. they need an incentive to complete their jobs. We are not paying them a lot of money to do their routines and as they get older we will change how they can earn money at home. Realistically I think we are saving money by doing it this way(stickers or candy cost more than a penny each usually) and hopefully it will be a good start to them managing their money well.
They get one penny for completing each job on their routine chart. This means they can earn up to 18 cents a day, five days a week. On Saturday they can earn 10 cents for doing their clean up within the time frame given. This means they can each earn up to a dollar a week. To help with teaching money management I made piggy banks for each of them using acrylic baseball card holders that I found at Michael’s on clearance. I’ve had the banks for awhile but I just finished personalizing them for my younger sons.
Each bank has three sections, spending, tithing, and savings. They put 80% into spending, 10% into savings, and 10% into tithing anytime they are given money. They cannot use their savings or tithing money but their spending money is theirs. They may choose to spend it immediately or to save it for bigger toys/events. The next step to making this even more effective is to not buy them any random toy without taking the money out of their account. I tend to bribe them to be good at the store with dollar toys or candy. It doesn’t happen every trip but I think I will stop it entirely except in extreme emergencies.
On Sunday we will go through and exchange change for bigger denominations of money so that I can keep a steady flow of change. I have them count and help me to exchange the money so that hopefully they will also begin to understand how much each coin and paper is worth. We will also give them regular opportunities to choose whether to buy things or not. Today we are going to the grand reopening of our favorite local bookstore. Maybe they will buy something or maybe they will wait until later. I’m excited to see what they choose.