Quiet a few of my friends have asked me to share with them a break down of what I do for my oldest’s allowance.
In this house we have normal chores that are part of every day life that don’t earn you any money. I want my girls to know that a family is a unit and that it takes hard work and everyone pitching in to make it run. So for my 7 year old this means loading and unloading the dishwasher. For my almost 4 year old this means giving her a swifter duster and letting her go to town, and not expecting much.
So for my Big’s actual chore she has to clean the bathroom, and I don’t mean just clean it, I mean clean it to my standards.
Here is what we do:
She gets $15 twice a month. So $30 monthly.
Tithe is 10%= $3
Savings= $5 (Now for every month she chooses to put money into her savings account I match her 100%. She decided on $5, but can always put more in if she chooses. She is not allowed to touch this savings until she is 16 years old. Much like a 401K.)
So her total monthly bills= $20, leaving her $10 a month to spend on whatever her little heart desires. I don’t do loans, but I have allowed her to overdraw her account once and I charged her a $0.25 bank fee. (This probably isn’t something I will let her do in the future, as if she doesn’t have her money with her then she doesn’t get to spend. This was a rare occasion.)
I’ve made this scenario as much like real life as possible, as I want her to be financially stable one day. The scale I used is basically 10% of a real life salary and real life costs.
The 1st part of the month she pays 1/2 of her tithe, 1/2 her food, and 1/2 her gas, and all of her rent.
The 2nd part of the month she pays the other 1/2 of her tithe, 1/2 her food, 1/2 of her gas, all her utilities, and all her savings.
She has a check ledger to put all of her transactions in. Every time she spends money on things she wants out of her remaining funds, she has to get the receipt and put in the ledger.
She recently go bored of her job and came to me complaining about wanting a different job. We had a very long heart-to-heart as I explained to her that she had 3 options.
2.) Give her two weeks notice.
3.) Continue on.
I told her if she quit, then I would not be able to hire her again.
Giving her two weeks notice means that one day when I have a new job opening she would be eligible to possibly be hired back.
Continuing on, and doing a good job would one day make her eligible for a promotion (Vacuuming is what she really wants to do.)
After thinking long and hard, and after her many frustrated tears, she decided to continue on and is quiet happy with her job now as she found it easier to do while listening to Kidz bop.
It’s been great to see her pride in working hard for her money. And I know that though it doesn’t all click 100% right now some day it will, and hopefully it will prepare her for the harder financial decisions in life.