It’s not your salary that makes you rich, it’s your spending habits. -Charles A. Jaffe
What a true statement! Today I am writing about how in our home, we are teaching kids the value of money. We live in such a fast paced world-you can order almost anything with a quick tap on your smart phone or the click of a mouse. Not having to carry cash can desensitize you to your spending habits. You may not know how much you are spending. Please tell me I’m not the only one!
Over the years my bad spending habits trickled down to my son. He literally thought that a swipe of my debit card could fix everything. Fortunately, I met Dave Ramsey 
I took his Financial Peace University class and it changed my whole perspective on money.
Teaching Kids The Value of Money
Not teaching your children about money is a huge disservice. When I was in my early 20’s I knew nothing about money, except for how to spend it. My bank account was always going in the red, I didn’t know how to meal plan, I did not budget for anything. I had a carefree-spending-attitude with a not-making-enough kind of income. I grew up this way. It’s what I knew.
I look back and see how young, naive and just plain financially dumb I was! After reading Dave Ramsey’s books and taking his course I learned so much. I’m not perfect with money, but now, all of my bills are paid on time. No matter what. I actually have an Emergency Savings account. I paid for my wedding in cash. I budget for everything. And best of all, my husband and I are paying off our debt.
I don’t want my children to ever struggle like I did because of stupid money decisions and spending habits. So I decided to change my family tree! No more broke and in debt.
My oldest child is my son and he is 10. Instead of giving him an allowance and letting him spend it on anything we give him a paycheck.
That’s right. He earns a paycheck. Every Friday is Pay Day and if he missed a day of work, he doesn’t get paid for that day. I set up a Youth Account for him with our bank that makes it easy to transfer money, he has a debit card linked to the account as well.
My son is allowed to spend a predetermined amount each week and he has to save a certain amount too.
This change in “allowance” has made my son more careful about what he spends his money on. I think this is because he knows how long it takes him to earn it!
Creating A Chore Chart:
I do a really simple check off in my Erin Condren planner. My son’s chore is to clean the living room each day. He knows he has to pick up the toys and pillows and then vacuum. Each day he does his chore I put a check mark in my planner. On Friday, I add up how many check marks he has and he gets paid.
My son also does other chores around the home like:
- taking out the garbage and recyclables
- emptying bathroom trash cans
- keeping his room clean
He doesn’t get paid for all the chores. I want him to realize that some chores are done because we are part of a team and the chores are still important even if he is not getting paid to do them.
Here are a few Chore Chart Printables I found for you:
How do you do allowances and chores at your house? Leave a comment below, I’d love to hear from you!
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I love these ideas, and yes, you’re exactly right! Teaching kids about money and responsibility is so important! Thanks for linking up with us this week! I hope the rest of your weeks is fabulous!
Gena recently posted…Mommy Link Up Party – Week 15 – Allowance
I love this post! Teaching kids about money is so important, it gives them a leg up in the world. Love the chore chart idea. I need to get one together for my kids, it would be so much easier for them to visually see one.
I love this, thank you for sharing! My four year old is already asking about money and shopping saying things like “Momma we need more milk we need to go to the grocery store to buy it”. #HomeMattersParty
Stacey recently posted…Star Wars Play
You are welcome Stacey! I’m so glad you enjoyed my post. 🙂
This is interesting read, Crystal. Great ideas to teach money. I don’t have kids yet but I will share these ideas with my friends.
Sahana recently posted…Home Matters Linky Party #86
Great suggestions on such an important topic! Thanks for sharing at #HomeMattersParty
Michelle James recently posted…Home Matters Linky Party #86
This is such an important lesson to teach. It sets your kids up for the rest of their lives. THanks for linking up with us at Family Joy Blog Link Up this week.
I love this! I’m going to start doing this with my kids. It’s the best way for them to learn. We just started reading Dave Ramsey. Thanks for this post! It was so helpful!
Tweeted and shared your post. This is a great topic and one that I think many parents will benefit from! Thanks for sharing it on the #HomeMattersParty
Jeanne Grunert recently posted…Home Matters Linky Party #86
This is a good system too. I like that idea of him earning a paycheck. We personally don’t pay our kids to do chores. HOWEVER, they do get to work for either of our family businesses and EARN a paycheck doing actual work that is kid appropriate to handle.
Like you, I do feel it’s important that they learn these skills while they live with us.
Crystal Green recently posted…7 Mouthwatering Banana Recipes You’ve Got To Try
Teaching kids money may seem mundane, but it is SO important. Great tips. Thanks for sharing and co-hosting at the #HomeMattersParty – you’re lovely! 🙂
~Lorelai
Life With Lorelai
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