3 Tools For Raising Money-Smart Kids

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For most kids, money is an abstract concept. They need food, water, clothes and a home, and all those needs are magically already provided for them. And when they want a toy or game, those wants are usually met too.

But they don’t yet have a sense that the money it takes to buy those things, requires work.

That’s why I personally don’t pay my kids an automatic allowance. It takes away the sense of work equalling reward and replaces it with a sense of entitlement, a feeling that they deserve the money no matter what.

But I’m not at all against giving kids money when they earn it.

I think the three most important things to teach kids about money are:

1- You have to work hard for it

2- You usually have to wait for it

3- And you should spend it wisely

And you can do this with these three tools:

Work It!

This chart has a space for each day of the week where you can add stars for whatever type of work you want them to do. It can be for chores, good deeds, grades or reading, your choice.

And at the bottom, there’s a space for that month’s goal and how many stars it will require. And that’s where you decide the payment. It can be money, a toy or a trip to an amusement park or other fun activity.

I give my kids stars for chores and good deeds. They love to count their stars each day and compete with each other to get the most. When they get a certain amount of stars, they get a toy or a fun trip.

Salary Sense

This is a concept I first heard from Dave Ramsey. It’s a payment system for kids set up in the way adults get paid.

This chart includes days of the week to keep track of work such as chores, good deeds or school work, whatever you choose.

It also includes a bi-weekly payday. You can make it a weekly payday if you like, by coloring in the open Saturdays.

Goal-Getter

This can be a very visual way to teach kids about goals, how to achieve them and how long it takes.

This chart includes a large open space at the top for their goal. You can cut out a photo of the toy or video game they want and tape it in the box. You could also let them draw it, or just write it in.

On the side, you fill in the cost for the item they want and track their progress on the lines below based on the money they’re earning from the tasks or chores you want them to do.