B is old enough that she asks for money to purchase things so we decided that she was at the prime age to begin earning and learning about money. This topic of course brought up the issue of how to pay here: allowance or by task.
In my opinion (I realize this will offend some but please understand this is how I feel personally), an allowance teaches children a sense of entitlement. Our society is all about give it to me and give it to me now because I should have it. I think that if someone studied this they would find that children who were simply given an allowance for nothing are part of this group of thinking.
I also do not believe in giving children money for doing basic chores around the home. Every child needs to learn basic home upkeep as they will need these skills for later on in life and will not be paid to do them in there own home. I think it sets a bad precedent to teach them that making their bed and brushing their teeth earns them money.
So your asking yourself, how does she pay her child? To answer your question, we pay a set amount based on a predetermined set of tasks and pay scale. These jobs are things that are out of the ordinary or special tasks that she can earn a wage for. We don’t call it allowance either, it’s a wage she has earned. This teaches B that she must work for what she earns. If she wants to earn more, she must do more.
Does it work? Yes! B knows that if she wants something special she has to have the money to buy it, which means she must work to earn it. She also spends money less often because she realizes how hard it is to work for it.
A great article by Suze Orman really sums up what I believe when it comes to children and money. We have many of the same views and I really appreciate her candid conversations with children. Even if you don’t read her article think about this quote taken from it:
“When I ask young children why they get an allowance, they just shrug and tell me because their brother or sister does. Or because their parents give it to them. Folks, this is ridiculous.”
Tuesday I will show you our responsibility chart that shows her daily responsibilities plus her job opportunities each week for pay.