How to handle chores, spending money and allowance is one of the most common money-related questions parents have. It’s also a deeply personal decision each family needs to make for themselves. Here are some common models and philosophies parents use to help you think through your own plan.
“Chores Are Part of the Family”
Some families don’t like the message paying for chores might send. They are afraid that if kids are paid for chores, they might feel entitled to a reward every time they help with something. If you decide chores are a part of life that doesn’t receive compensation, come up with a plan for how spending money is handled instead. Does your child ask you every time they want a toy? Is there a limit on those asks?
“I’ll Pay You for Good Grades”
Some families choose to pay students for good grades in school rather than chores. The philosophy behind this approach is that adults don’t get paid for chores, but they do get paid for going to work, and school is like a child’s “work.” If you go this route, consider how you’ll handle classes where your child is trying their best and working hard but didn’t earn a top grade. Consider if you’re looking at class grades, homework, effort, tests or a combination of all factors.
“I’ll Pay You for Chores Around the House”
Some parents decide to designate a list of chores for their child and pay a set amount when the list is completed. If you go this route, consider how you’ll handle if your child decides they don’t care about spending money some months and don’t do their chores. Do the chores still need to be done? Do they get partial allowance for partially completed chores?
“You Receive Spending Money Each Month”
Maybe you decide your child will receive a set amount of spending money each week that is not tied to any sort of chore or task. The philosophy here is that the point of allowance is to help children budget, not to reward them for completing tasks. In this case, consider: Does that money always show up? Are there any restrictions? Is there ever a situation in which they wouldn’t receive it? What would that situation be?
A Combination Approach
Many parents end up choosing a hybrid approach of the options above. For example, some chores are family chores and some are completed for money. Maybe allowance is weekly, not monthly. Maybe it’s daily! There is no one right way to do it. Only what works best for your family.
Regardless of what process you choose, remember to clearly communicate your expectations to your child and be consistent. An overly complicated plan you won’t be able to stick to isn’t worth it! Make sure you and all family members are on the same page with how money is earned and given, and which types of spending comes from you child’s earnings and which types of expenses are covered by adults. By thinking through these logistics in advance, you’ll help your child build life-long money skills.
