Amazingly, she had no takers. So she changed tactics. Sensing that the children did not want to harm the crickets, or deal with the carnage, she brought out the vacuum cleaner. The middle child – happy as ever to spend time with her mother – volunteered to suck up crickets while the mother moved things around to expose their hiding places.

This is a great example of how a parent can use chores to encourage children to work. Although money is a great motivator for children’s chores, it is not the only reward children value. Your goal as a parent should be to teach your children to be independent (support themselves through earning money), as well as helpful members of society (a sense of fulfillment by volunteering or helping friends and relatives).

Everyone Works

Before children learn the lessons of working for money, they should learn to be responsible family members. In middle class America and other societies, the family works together to make a house a home. Everyone helps, even toddlers, who can empty small trash cans. The kids may complain about it, but parents should maintain a “this is the way our family operates” attitude. Chores should be assigned, completed, and inspected. Kids should not be paid for regular household chores.

To be fair, rotate chores, if everyone is equally competent. To make it a little more fun, rotate the job of Chore Inspector. Kids can be just as picky as Mom or Dad, and they will learn the importance of quality workmanship.

Working for Wages

A child will only be motivated by money if he feels a need for it. If the goal is to teach him the value of work and money, do not give him everything he could possibly want. Let him earn some of the goodies he craves.

Once the children have their chores down pat and are somewhat dependable, they are eligible for paid positions. The parent can post these positions, the terms, and the wages somewhere in the house, or they can announce job openings during a family meal.

Parents should decide whether they will offer paid jobs as ongoing work or on a contract basis when a child wants to earn cash. Ideas for ongoing or contract jobs include:

Car wash
Window cleaning
Weeding
Crushing aluminum cans for recycling
Help with a home improvement project, such as scraping paint
Gopher
Party Planner

What’s a Fair Wage for Children?

It’s best to pay enough to encourage children to try, but not quite as much as one would pay another adult doing the same job. Children are learning on the job, like an apprenticeship. Another option is to set a goal of certain pay scale levels depending on the age and how well the child performs the job. If the child does the job as well as an adult, he deserves to be paid for it.

Visual Earnings

Use a notebook or a software spreadsheet to set up accounts for each child. After each child finishes a job, record the payment in the account. Payment can be made immediately, or kept in the account until “payday.”

Keeping an account like this is handy for those times when the child becomes indebted to society. Library fines or broken windows can be paid from his account. Pay his debt if his account is empty, but put his account in the red until he works it off. It’s a great way to teach responsibility and carefulness.

Play Wages

Young children often don’t care about money. They would rather play. Young children, up until the age of about six or seven, see some types of work as play. It is a novelty to them, and makes them feel bigger when they do something they see their parents doing. Parents are wise to take advantage of this narrow window to prove to their kids that work can be fun.

A boy asked his mother if she wanted to play store. She was in the middle of a project, and any other day she might have said, “Not now, I’m busy.” But she happened to need a shelf full of canned goods moved to another room. She agreed, but explained that playing store would be a little different than what he had in mind.

“We can play that we are setting up a store. I’ll hire you to help.”

“Am I getting paid?” he asked, latching on to that word, “hire.”

“No,” his mother said. “Not this time because we’re playing.”

“Okay,” he said. “Can we pretend you will pay me something?”

The mother used real-world figures to decide his payment. She also gave him job titles. First, he was a carpenter. He used a drill to remove screws. Then he was the manager in charge of purchasing for the new store. He took the dry goods off the shelf and put them in a laundry basket, then took them to the new location. Finally he was a stock boy, and organized the items on the newly-installed shelves. For each job he was “paid” a different wage: $10/hour for carpentry, $15/hour for purchasing, and $8/hour for stocking. When they finished the job, the imaginary paycheck was delivered. They both went away happy.

Training children to work is seldom so easy, or convenient, but it pays off dividends in character. Children may go on to universities and high-paying jobs and theoretically hire out their household chores, but learning to work early in life is a lesson that no ivy-league degree or cushy corporate job can provide. Yes, work can be hard and is often boring, but kids learn other life lessons along the way: discipline, thoroughness, team work, responsibility, and that really crucial one – independence. The child who learns to work is the child who will have the confidence to try other, new, and seemingly very difficult things.

Develop a Working Role Model for Younger Children

For younger children, having a parent or older sibling model work assignments can be highly effective in teaching a positive work attitude. A parent or older sibling can take the child through the chore assignment, modeling it step by step. A parent can directly praise the child or older sibling and point out what a good influence they are on a younger sister or brother by their wise work choices. This type of positive reinforcement builds self-esteem and family unity. Effective modeling of a chore assignment, through a parent or older sibling, is the basis of developing a positive work attitude

Some basic work experiences for small children three to six years include:

Helping a parent or older sibling dust
Sorting the silverware from the dishwasher (teaches sorting a basic math concept)
Helping a parent or older sibling empty the bathroom trash into a big bag to be deposited in the general trash
Helping a parent or older sibling water house plants and outside plants
Picking up and putting toys away (Parents or older siblings can direct and give supervision)

Introduce Chore Cards to Older Children

As children grow and develop more muscle coordination and problem solving abilities, its time to introduce more complex chore assignments. Since children can read at this stage, chore cards can be introduced. Chore cards are step by step instructions for each chore listed on a 5X5 or 4X6 card. Keep chore cards organized by filing them in a recipe box labeled with each household room. The step by step instructions can teach a child how to break a big job into manageable steps. This is a concept that can apply to homework as well as many everyday situations. As a child begins a chore assignment, post the card near the working area so they can easily follow the step by step instructions. Have the child return the card to you or attach it to their chore chart once all steps have been completed. Keep the steps basic and expectations about the middle of the road. A child should not feel overwhelmed and a positive work experience should be encouraged.

Some ideas for work experiences for children seven to ten years include:

Dusting furniture
Cleaning mirrors’
Washing and drying dishes
Loading the dishwasher
Cleaning one part of the kitchen or bathroom (the sink, toilet, bathtub or counter top)
Watering indoor and outdoor plants
Sorting laundry (will also help a child further develop color and grouping skills.)
Folding laundry
Feeding the family pet

Older Children Need to Develop Balance

Older children should have more household skills and need to develop a balance between work, school and social activities. Finding this balance can be stressful. Keeping this in mind parents can make chore assignments that will not overwhelm an older, busier child. At the same time, pre-teens and teenagers do need to step it up a bit and develop more complex work skills that will assist in achieving more independence. Talking with your child about achieving independence will help them realize that you are preparing them for real world experiences. They will also be less likely to look at the parent as the “monster task master.”

Some ideas for work experience for children ten to fourteen include:

Helping wash or vacuum the family car
Helping younger siblings learn how to put things away and where to put them
Vacuuming
Cleaning their own bathroom (include moping and/or sweeping)
Cleaning most or all of the kitchen
Dusting blinds
Assisting in preparing family dinners (chef’s helper)
Washing a window
Learning how to work the washer and dryer
Taking a full load of laundry from start to finish including folding on they’re own.

Encourage Teenagers to Develop Independence

Teenagers need to gradually prepare to become fully independent of Mom and Dad. As long as they are still living in the home, they should be given responsibilities around the home that will prepare them to eventually establish their own household. Knowing they are working toward full independence will promote a positive attitude and less frustration over household chores. The work pace is stepped up a bit as they learn how to balance school, a job outside the home, and work around the home responsibilities.

Some ideas for work experience for children fourteen to eighteen include:

Getting a job outside the home that will allow them to save for college and pay for some of their expenses
Cooking a family meal
Doing their own laundry (start to finish, include ironing if needed)
Mowing the lawn
Helping with gardening
Helping paint or decorate
Dusting and vacuuming an entire room
Cleaning their own room and bathroom
Mending
Doing Dishes

When making job assignments, keep in mind that children have individual tastes and preferences. One child might enjoy a certain job and balk at another. Setting your child up with work he likes to do will make the job go faster. However, don’t spare your child all the pain as every child needs to learn to follow through, even on tough jobs they don’t like.

Make sure that the chore chart has squares associated with each chore that the child can check off on a daily basis. Stress accountability by requiring a child to sign at the bottom of the chore chart indicating they have completed a day or week’s worth of required chores. Conducting inspections after a work session will create a positive learning experience by pointing out where a child did well and what they need to work a little harder on. Build on the positive and let them know when they need to redo something that they are just learning and you have confidence that they will get it right the next time. This positive learning reenforcement will teach them how to personally reflect on their individual skills and be honest with themselves about their own personal improvement.

Keep outcome expectations about middle of the road as this is to be a learning process and a child often will not do a job exactly as a parent would. Be patient even during the complaining times and help your child understand the big reward of satisfaction from a job well done. Knowing they are earning their own money is sure to bring smiles of self confidence.

Free printable chore charts can help you get started today!

More ideas on how kids can earn money.

“Allowance Magic” website can help parents and kids turn allowance into an important learning t
ool.

Allowance is to Allow

The word “allow” as defined in Webster’s College Dictionary refers to “giving permission or to permit.” In essence when a parent uses the word “allowance” in association with money, it means that a parent is allowing or giving permission for a child to have and use a certain amount of money. While parents should set limits on allowances and teach wise spending habits, allowing a child to have money without working gives a false impression. They quickly learn that mom and dad’s wallet is the place to go for the green stuff that can make dreams and wishes come true. Earning a payment for hard work accomplished and using the word payment in association with chore assignments will teach your child that money and hard work go together.

Your Child’s Chores and Payment: How Much?

This issue seems to be of much concern to parents as no one wants to over spoil a child. Demanding, expectant children who are used to “having it all” will grow up with unrealistic attitudes. A reasonable payment that fits the family budget and lets your child practice making a personal budget is essential to family unity. Small children do not need a lot of money and are better off starting small with dollars and cents. A simplified system recommended by a “Mommy Expert” involves making a payment that equals half the child’s age. For example, if the child is three years old, the payment would be $1.50 for a certain amount of chores per week or per month, whatever can fit into the family budget. Remember, it is not critical to pay your child a lot of money, it’s just critical that they learn how to earn and manage the money. As a child grows, payment is increased to fit the amount and difficulty of chores they are able to perform.

Another option is to create a chore payment chart. Have the amounts of payment based on the difficulty and number of chores completed. Each chore is assigned a certain monetary value and as a child completes chore assignments, the amount of payment adds up. This is more of a “real world set-up” and can encourage children to look forward to growing up and doing bigger and better things. It will also challenge them to take on more difficult chores to earn more money.

Payment for a Job Well Done

Be sure to follow through on payment for a job well done. Set up a payment schedule and be consistent. No one likes to do work without getting paid and children are especially prone to disappointment when parents fail to follow through on their promises. Make payments regularly as the work is completed. Daily, weekly, or monthly, as long as it fits into the family budget. If a child in the family does not want to participate in chores, offer the work experience as an opportunity for another child in the family to earn money. This can help use peer pressure in a positive manner as the unwilling child will quickly recognize that someone else in the family is going to earn their money!

Throwing out the word allowance and teaching your child to associate good work with positive results, including money, can help them develop a positive work ethic. As a child grows older and develops skills learned from working in the home, they will be more comfortable with money and be able to tackle the real world on their own.

Be sure to check out these links to help your child learn more about money matters!

Play fun games and teach your kids about money with the Planet Orange website!

More help with your children’s allowance and chores

Childn’Parent’s guide to Children and Money Matters

It happens to every parent at one time or another. You’re strolling down the cereal aisle, trying to decide what would be the best buy when your child erupts in demanding excitement: “I want that!” Eagerly the child points to a box of cereal that he or she just has to have. Looking at the unreasonable price, you groan and wonder just how you’re going to explain to a five or seven-year old that it’s just not in the budget. “It’s too expensive,” is what most parents will say. But to a five or seven-year old what do those big words “expensive” and “budget” mean? And where does all that money come from anyway? The ATM machine? When parents start hearing questions like this, it is time to teach your children about money matters.

Money Matters for Kids

A child’s perspective on money is often very different from an adult’s. When a child is comfortable and well-taken care of they might assume that Mom and Dad are rich. This view point is encouraged by that machine called the ATM where you can go and get money whenever you need it. Children often do not make the connection between paycheck, bank balance, wise budgeting and saving unless parents talk to them about their personal finances. Janet Bodner, the author of “Raising a Money Smart Kid” states that “Parents are told to talk to their kids about sex, and they are told to talk to their kids about drugs and all of that, but not often to talk about money.” In today’s world of credit cards and interest-only loans it is wise to get an early start on teaching a child how to be money smart.

The Dollars and Cents of Money Matters for Kids

Children need to learn the basic math concepts of dollars and cents as well as how money is acquired. Ms. Bodner states that “Study after study shows that kids learn most of what they know from their parents. From the time they were toddlers, kids have been sitting in the back of the car watching you go to the ATM, and it’d be easy to think that there’s just a little printing press back there spiting out money. But if you explain to them that the bank is like a big piggy bank for Mom and Dad, and just like their piggy bank is empty sometimes, that yours is, too, that’s a simple way of telling them that the cash machine is not an endless supply of money.”

It is also a good idea to show a child a personal paycheck and explain how it works. A trip to the bank to deposit the paycheck is an enriching experience for the entire family. Small and older children can also be included in organizing the family budget. Envelopes with play money could be used to represent different budget categories such as electricity, mortgage, groceries, heating costs and entertainment. Explain that some budget categories like a mortgage (home), heating, groceries, emergency savings, etc. are needs and must be carefully planned and budgeted for. Other items like entertainment, eating out, and vacations are wants which should be saved for. Explain that if too much money is spent in one area, say groceries, then you have to take money from somewhere else, say entertainment, to pay the overage amount. Show this by transferring the play money back and forth between the envelopes. Through this method children can learn to differentiate between wants and needs and how their personal actions will affect the family budget. For example, if Mom or Dad buys me that expensive box of cereal, then I might have to give up a treat at the movie. Including children in planning the family budget helps them understand that dollars and cents are real tools for everyday living.

Real World Experience at Home

Before your children grow up and tackle real world finances, they need to have some real world experience at home. It all starts with a Bank. Set up a savings account for your child or get a cash box and a checkbook and set up your own Bank of Mom and Dad. Give your child a chore chart with monthly or weekly responsibilities that the child must accomplish to receive a paycheck. Decide with your child what would be fair payment for the chores accomplished. Harder chores, such as washing windows, might qualify for a higher paycheck. Set up a pay date and pay your children based on how well they follow through on their responsibilities. Be sure that your children understand the chores and can do them well enough. Younger children can help pick up toys in the family room while older children can help with vacuuming and dusting. Pre-teens can do harder jobs like mowing the lawn and babysitting. Paying your child on time and praising them for a job well done will encourage self esteem and help them gain a positive work ethic. If you have a child that is stubborn and will not pull their fair share then withholding or deducting from their pay check will give them real world experience without the real world consequences.

Taking your child to the real bank or the “Bank of Mom and Dad” to deposit their money will give them a firmer idea of what a bank is used for. They will also become familiar with deposit and withdrawal slips as well as the system of a check or savings book. It is also important for parents to explain about credit cards, loans, and interest. In our instant self-gratification society, children need to have a firm sense of how interest can hurt and help them. Parents can explain that banks charge interest for people to borrow money. Parents can further explain that borrowing for something may result in paying more than what the item is actually worth. Parents can encourage children to save by explaining that a bank will pay interest on their money if they regularly deposit and try to keep their money into a savings account. Parents can also explain that credit cards are like loans which charge the borrower interest.

Children can learn to budget their paycheck money wisely. They can take their paycheck amount and write out a budget for wants, needs, and savings. Older children can pay for their own school fees and lunches. Pre-teens can budget for school, clothing, and personal hygiene items. Parents can expand the real world experience with teenagers by showing them how to shop for sales and use coupons to save money. Teenagers could be encouraged to plan and save for college. They could also learn how to look for paying jobs outside of the home. If a child blows their allotted budget on one frivolous thing, they could borrow from Mom and Dad for their needs and pay the loan back with interest. Making mistakes at home is a great way for a child to learn how to be careful with money.

Money and the Internet

Over the last ten years the internet has had a dramatic effect on how people handle their personal finances. Teenagers need to be familiar with automated bill paying and how banking can be done online. Parents and children together can set up a chore allowance system online through PayJR . This no-cost web-site allows parents to set up a chore chart and a pay scale for each chore. Children can mark their completed chores on-l
ine and the system will send an e-mail letting a parent know that the chore is complete. Parents can log in and track how many chores their child has completed and how much they owe their child. They offer a printable chore calendar: a savings program and a prepaid debit card that teens can charge against a prepaid balance. The card is accepted wherever MasterCard is used and has built in safety precautions that keep teens from spending money on inappropriate adult items. David S. Jones, the CEO of PAYjr.com states that “Our system helps teach teens to budget their money and hopefully will also teach teens to spend and earn responsibly as well.”

Better Financial Decisions

No parent wants to send a child off to the real world without a good idea of how to handle their money. In fact, not teaching a child about money matters and how to be responsible with money is a recipe for financial disaster. Children with a good knowledge about money and how to use it wisely will be more confident and will make better financial decisions.

These selected sites can be helpful in teaching your child about money matters:

Earlyearners Teaches children how to save money and how fast interest can accrue by saving just one dollar a day. Also offers savings and investment accounts for both children and parents.

Fleetkids Offers fun educational games that teach children about saving and spending. Kids can compete for prizes.