Here are his guidelines paraphrased and commentated by me.
- You can start teaching your children about money as early as pre-school. But don't wait until after third grade.
- Pay them for chores completed around the house. He recommends $1 per chore and five to six chores per week, but clearly this could/should be tailored to your personal situation.
- Don't give them an allowance. The argument here is that this doesn't really teach them anything about money. (You can learn how to manage money from what you earn, but just flat out getting a free gift each week doesn't provide much in terms of teachable moments for money.)
- Let them work. Obviously, this is an age and situation appropriate kind of work-- such as babysitting, or mowing lawns for teenagers.
I know the issue of an allowance is a little prickly, since some parents don't like the idea of a child who only helps out if they get paid. I agree that would be bad. But I actually like this other Dave Ramsey idea** that I think could work well. Basically he says you have three different categories of chores.
- Chores you're expected to do and get paid to do (and not paid if you don't).
- Chores that you're expected to do (I believe he says "and punished if you don't") because you're part of the family. You don't get paid for these.
- Chores that are optional and paid. (e.g., "Kids, who wants to help me sand the deck this summer? You don't have to do it, but you'll get $XX if you do.")
Just for fun, I made a simple printable chore chart for you. I think you could use different colored stickers or markings to differentiate between the different categories of chores (the three I talked about above). That would make it easy to tally up your weekly earnings.
|Download PDF by clicking on link above.|
*He's sort of a personal finance superstar. Here's his website if you're interested.
**I really, really wish I could give you the link, because I hate referencing things when I can't give you the source, but I can't find it anywhere. It was an excerpt from his radio show that I stumbled across like a year ago.
Share-- What's worked well regarding kids and money in your family?