Teaching your Children Money Management: Chore Charts, Payscales and More

Screen shot 2011-07-26 at 5.06.27 AM.pngPhoto courtesy of Melissa Fulton
A few days ago I wrote this as my status update on the Birmingham Bargain Mom Facebook page: "Birmingham Bargain Mom: My daughter came up with a list of chores she can do to earn money. She wants to open a checking account to get a debit card (She's 6, so that would be a no.) However the chores to earn money sounds like a possibility. What do you do?

One reader posted an awesome example of an organized chart with detailed chores and pay scale.  Here's what she wrote:
Melissa Wright Fulton everything you see on the board was written w/permanent marker so that she could check things off w/a dry erase marker and i could erase her checks every week but not all the other info that took me forever to put on there!  She got 2.50 base but had to do enough work a week to earn at least 3.75, but we would pay her no more than 7.50 a week.

Understanding the chart -- D/W/AN to the right of each chore was how often they could be done... Daily/Weekly/As Needed

Melissa went on to write:

My daughter was able to pick what she was in the mood to do or how much she wanted to earn and then check it off. we used a dry erase board so we could change the chores as she grew, but a poster board would work too!

We started at about 8, but the chart evolved over the years as she grew and was able to do more 'real' chores. the chart in the picture was last used when she was about 12 i think. I have a three yr old son now that I want to get started doing this too and was thinking about doing a similar chart but maybe w/pictures instead and of course chores that are more on his level.

Do you have a similar system?  I would love to hear about it. 

Here's what readers suggested:

  • Mary Cuzzort Galloway my 5 yr old does chores for money. some things she has to do just to learn to clean up after herself and then there are others that if she chooses to do them she earns money.
  • Bella Armyknightslady Dave Ramsey says debit cards and credit cards are bad influences on children and teach them of the plastic infinity of money. Seeing the green makes it much more valuable. I used to give my daughter gift cards for chores but now I give her cash or she fills up her chore board for a nice gift. She is 8 she can help with the pets (3 cats and a bird), She keeps her room clean, Cleans the down stairs powder room, she can help with laundry, mopping, and dishes. Also helps with her 2 year old borhter

  • April Starnes-Riggins I created a "chore chart" and once they get x amount of stickers, they get $5... my kids are 7 and 12 and it works great!

  • Crystal Dodd maybe get her a prepaid debit card with it n show her how to keep up with the money on it its great math skills that she will learn or u be her bank for a while n use the same concept if she wants to make a withdrawl have her write down how much she is takin out.. as far as chores go small stuff dusting, help with laundry, dishes maybe n her room too

  • Drenda Glenn Womack I love the "wanting a checking acct and debit card" at that age the bank to me was where we went every Friday and they gave me a lollipop...

  • Katie Kizzire Abel As a child we always had chores to do mainly on Saturday morning. And I would wash dishes and sweep our neighbors floors where she cut peoples hair in her home hair salon. And as I got older I washed cars and cut grass. My son had some chores but always had yard work to do and cut our and both his grandmothers grass to make money.

  • Bree Marchman My daughter is three and not interested in chores for money lol maybe i'll try a toy instead of money at this age

  • Claire McKinley Drummond Just my opinion, but my older children are 4and 6 and we do not pay them for their chores...we feel like they live here too, they help make the mess, they should help clean it up. We don't get money for doing chores. They clean their room, help me dust and clean the mirrors. As they get older they will start getting an allowance, but it won't be them getting paid to help out around the house.

  • Julie Johnson Collier Empty bathroom trash cans into the kitchen trash cans, always make sure the toilet paper supply place is supplied with TP, make her bed, pick up her toys, dirty laundry in the hamper, load the dishwasher (no knives of course). Just a few off the top of my head. My children do most of this...I just have not started paying them.
  • Angel McGowan They make a little "bank" that as the child puts money in - it keeps a running balance and when they take money out - it deducts it. It helps them start to learn early how money works, earn and spend.

  • Jana Jenkins Davis My girls are grown now, but when they were growing up they had regular chores they did to learn responsibility (no money), learning that they were part of the family and we all worked together to keep the house clean and neat. Then they had "EXTRA" chores that were on a list...Things they could do to earn money, so that it was their choice whether they earned or not, to have money of their own to spend on things they wanted.

  • JoAnna Baker Stewart I have an envelope on the side of the fridge for each of my 2 children (7 and 12 yrs old). When they willingly perform chores or tasks without being asked to do so, I slip an X amount of money in their envelope. I also do this if I catch them doing something nice. BUT, if they do something they shouldn't do I can take money away from the envelope if I feel it is necessary. t the end of the month they get to see how much they have earned.

  • Rebecca Harrison Roy My kids do not get paid for doing certain chores. Those chores are done to learn responsibilty and as part of living in the house. If my kids are saving for something special we come up with some chores that we see would be money worthy. We also do not pay for good grades. They are expected. We will however take them out to eat to celebrate a good progress report.

  • Tori Rawlins When our daughter was 5 I felt it was a great time to try and set a foundation to learn about the value of money. She already helped out a ton around the house, so I included those items and a few more age appropriate jobs around the house. She earns a dime a job, with the opportunity to earn up to a dollar a day. She marks off what she has done and we drop her coin into a cute jar. At the end of the week we divide her money earned. She saves 20%( so she goes to her bank once a month to make a deposit) , she donates 10%( she chose JDRF) and the rest is hers to spend.

  • April Michelle Joyce My son does the trash and lawn, my daughter maintains the catbox,and they both clean the kitchen after dinner. Both also do their own laundry. They get bonuses for completing chores I don't feel like messing with.

  • Karyn Glenn Hallman My daughter has been doing the same thing- wanting to earn money for doing chores. She doesn't earn anything for cleaning her room or the playroom but she does for doing things I wouldn't normally ask her to do like clean her bathroom or washing the car.
  • Debbie Renea Wright We pay for chores. I was against it at first, for many of the reasons listed above as far as "part of living here". However, after taking Dave Ramsey's FPU, I changed my mind. It's not about the actual amount of money they earn. It's about teaching them the value of money and instilling a work ethic in them at a young age. They learn that when they do their work, then they get paid. When they don't, then they won't have any money. Plus, you can teach them to Save and Give not just spend. 10% to Give, 10% to Save and 80% for whatever. So $10 is really $8 spending, $1 Tithing and $1 Saving. You can adjust the % if they are Saving for something. Doing chores for money is a teaching tool on how to live in the real world when they leave your house. It's not about just paying them to do things.

  • Greg Cox I opened my 1st checking acct at age 12. I went around the neighborhood selling plant and vegetable seeds. I buy them in the store for like 20 for $1. And then sell them for $1 each and I made about $200 per month and in 79 that was a lot of money for kid.

  • Susan Torrillo Stewart My 2 kids (age 9 & 5) have 3 job jars - 1 for each of them with their specific assigned tasks (make bed, put away toys, etc) and 1 for the extras, ie take out trash, wipe down cabinets & baseboards, clorox wipe sinks, etc. When they complete a task they turn the stick upside down which is colored. they are required to do 1 extra per day but right now they are motivated and are doing 3 or 4 extra per day. Once all of the sticks in the extra jar are turned over they will earn $5. Once school starts this will probably take a week or so to do.

  • Jennifer Pate Gray What about a savings account instead? I do think chores are an awesome way to teach kids the value of money...tithe, savings, then let her decide how to spend the rest? Or even a kid version o Dave ramsey's envelope system?

  • Amanda Lee Thompson Solomon My oldest who is 4 helps around the house and we give him a small allowance that goes in a piggy bank. At the end of every month we take it out, count it up and he puts 1/2 in savings, has to give 1/4 to the tzedakah (charity) at temple, and gets to keep 1/4 to spend. At the end of the month it works out to about $1 on savings, 0.50 to tzedakah, and 0.50 to spend now or save for later. I think it is a great way to teach them the value of money, early math skills, etc. I think that a debit card is not for a 6 year old but you can give her a check register and let her use that to keep track of the money she earns and spends. Even if she just uses a piggy bank to keep her money instead of a bank account.

  • Katie Hare Evans My kids are 3 and 5. We have a sticker chart and they get to choose a reward once they reach their respective goal. We guide them toward activities that they can do with one of us - fishing, movie night, etc. They have enough stuff! :) Things they can earn stickers for: using manners, making bed, cleaning room, eating a veggie (big problem in our house) and minding parents. Will add to the 5 year old's when he starts school next month.

  • Kate McGough Lackey Great ideas! I'm definitely gonna use some of these for my 5 yr old.

  • Melissa Wright Fulton when my daughter was about your daughter's age (she's 16 now) we had a dry erase board (color coded) that had a range of chores she could do for different amounts of money. She had about 5 things that HAD to be done everyday for 'free' (free meaning included in her base allowance) such as making the bed and feeding her dogs, but then she could choose other things off the chart that she felt like doing that paid different amounts depending on the difficulty level. We had a cap on what she could make a week too, so once she hit that cap she was done. it worked really well for a few years... til she hit the preteen years and we had to fight her to do anything at all!

  • Diana Parker My husband and I don't pay our children for doing things around the house. However, I don't have them do anything except clean up after themselves. I don't get paid to clean up after myself or my kids, they don't need to learn to only do things for money but that it is nice to keep a clean house because it is the RIGHT thing to do. I have 4 kids ages 8 years to 6 months. The older ones are required to clean up THEIR things from all over the house every day. If they put it there then it is their responsibility to clean it up. I thinks kids need to learn responsibilities.

  • Lauri Clifton Howell Our chores for money are things other than what is expected of her as a member if the household I.e. bed making, trash, clothes in the laundry, table setting.

  • Greg Cox Also dave ramsey is a joke. He says to go get a newspaper route to make extra money I did that for 3 months. They told me I'd make $700 per month on this route. I made $312.25 for the entire 3 months plus I spent $300 a month is gasoline so for working 3 months I was in the hole $600 NEVER again will I listen to dave

  • Stacey Underwood my 4 year old decided that she wanted to start buying Legos. So I told her that I would start giving her a 50 cents a day to keep her playroom clean and her bedroom clean. (she has to do this anyway, just because I say so.. lol, but I think she enjoys doing it more knowing that she will get herself some Lego $) And if she dust twice a week, I will give her a quarter each time. She has always loved to help me clean and now she can earn some $ to buy her Legos. I am also trying to teach her to save a portion of the money that she has earned. I think the amount I am giving her is a good amount for a 4 year old. She isn't interested in dollars anyway, she wants the coins..

  • Kelly Rice Hall We do a dollar a week for the extra stuff and if I find they did not do their chores when asked no money for that week but they still have to do the chores.

  • Joy Spurlin I have 7 year old twin daughters & they have their own calendars with their specific chore in each day which is feeding & making sure our two dogs have water making sure dishes are done they load & unload dish washer with a little of my help & they wash their own clothes on mondays & Fridays with a little of my supervision this is our daily routine & their reward is they get Saturday & Sunday off!!
  • Brandy Varden Sunday My kids have jobs. When they get paid they have 3 jars that they separate their money into. One for savings, one for spending and one for giving to a charity. It's a great way for them to learn how to manage their money.

  • Christy Rangel Spruiell Mine have had accounts with debit cards since they started getting an allowance. My youngest is 8. They aren't as likely to spend money on frivolous crap, it's easier for them to save up for something they really want, it's easier to keep up with (they know their pins) than cash, and theirs earn cash back when used like a credit card. They still get cash for things - extra chores, tooth fairy, change in the pocket, birthdays - but the bulk of their "income" is direct deposited into their account.

  • Jamie Dodson My 6 year old does chores and is able to get things she wants. We take care of my bedbound mother who has a trach and other problems and she helps me alot with that. She is always there to help her Meme and me as well.....I appreciate the things she does even if it is the small ones cause it helps me alot to keep me from having to do it. So I say if your little one wants to do chores for an allowance or something than go for it. But of course we all raise our children different and have different morales so do what feels right for you and your family. :)

  • Donna Edwards Lee Financial Peace Dave Ramsey...awesome program

  • Christy Swan my oldest son who is 5 I made him three jars one is God-Save-Fun a portion always go to God then to save then fun when he spends his fun money on playing the wii we put it in his save jar but he has no idea....his choirs are pick up his toys make his bed and other odd and end jobs I feel like he can do easily.

  • Jennifer Snyder Dahrens my 6 year old does chores. there are some that she does not get paid for - picking up toys, making her bed, setting the table. but she can do other chores to make money. We have a chart as to how much she gets paid for a specific chore. Once she does the chore, she gets to take the amount out of the coin jar.

  • Tiona Freeman I think it's a wonderful idea. She will learn the value of hard work, saving money, and the idea of earning interest on money in an account, and working towards a goal, and not to mention the value of taking care of home. ~priceless