Teaching Our Children About Money

   It’s been coming……

  The day we start teaching our kids about money in a tangible way.

  I knew it needed to happen years ago already, but I just was so torn.  We do not believe in paying for Chores. It is our thought process, that doing dishes, laundry, running a vacuum, unloading the dishwasher, are all part of LIFE.  And sorry, but if LIFE paid for that kinda stuff, I’d be a rich, rich woman.

  Just sayin’.

   So we decided to go off the word Allowance.

  We are ALLOWING our children spending money each month!

  Here is how it works:

  At the beginning of each month, everyone gets a dollar per their year.  That means at our house, Destiny gets $10 a month, Tylan gets $6, Avery $5 and Paxton $3.

  The FIRST thing they must do, because God wants our first fruits, is tithe at least 10%.  We showed them on paper, how easy it is to figure 10% by simply swinging the decimal point over a space.

  If your kids are wondering why we have to tithe, then open your Bible to Malachi 3:10:

“Bring the whole tithe into the storehouse, that there may be food in my house. Test me in this,” says the LORD Almighty, “and see if I will not throw open the floodgates of heaven and pour out so much blessing that there will not be room enough to store it.”

   Next, they must save 20% to their savings accounts.  We want them to be in the habit of tucking away money for a rainy day or emergency fund.

  At the end of the month, they receive whatever is left of their “Paycheck” aka the spend drawer.  I say whatever is left because you can lose the spending part of your allowance.  Oh yes, it can go bye-bye in a hurry.

  See these beds? Every morning, they MUST be made!  making beds

  I charge 50 cents to make it the first time you forget, and it goes up after that until it reaches $1.50. Then you are locked in at the price forever more.  My maid services are not free when I know you are capable of managing your time enough to make your bed in the morning before school, or for my littles, before you can go play.

    If the kids leave out toys, they must pay me a coin per item, this amount is based on their age. 

  If they fail to obey, or sass instead, they go get me a quarter or a dime, again based on age and percentage of monthly “income”. 

  If they don’t wash their hands or flush the toilet, it’s a like $1 across the board…..

Yup, that one makes OCD me pretty fired up, so I figure for emotional damages its worth a buck.

All these charges come from the spend drawer, so its just less money to take to your wallet at the end of the month.

  I went to Hobby Lobby in hopes of finding 3 little boxes or banks for each child to have Tithe, Save, Spend.  I came out with more than I could’ve asked for! EEEK!

HOW PERFECT IS THIS?!?!?!?!

IMG_9054

  Each drawer is labeled and each row is a child, oldest to youngest. 

IMG_9056

  I have this box out in the mud room for easy access; whether that be getting our offering to church, or coins to pay mom for toys out.  Again, they may NOT use their spend money drawer, or move it to their wallet, until the end of the month.  Then they get another “paycheck” on the 1st.

This is working wonderfully for our family!  Tell me your favorite ways to teach your children about handling Money….

~T

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21 thoughts on “Teaching Our Children About Money

  1. Our daughter is still too young to even understand the concept of money, but when she does we will probably be working with Dave Ramsey’s commission idea. We would have chores they do not get paid for and then extra work that they can earn money from.
    I do love your concept of allowance and how you are allowing them the privilege of spending money. 🙂 Who knows. We may end up trying that.
    Cute “bank”! It looks like the perfect organizer for this type of training.

  2. Wow! I really like this idea. I think I am going to talk with hubby about maybe starting this with our kiddos this year. Thanks for sharing. Sometimes I think it just takes seeing what others do to get you mind working!
    ❤ and {{hugs}}

    • I just wanted to tell you that we made ours today! I am looking forward to teaching them about money and how to properly use it. Thanks again for sharing this!

  3. What a wonderful way to teach your children about money. I wish my parents had done something like that when I was young. Way to go 🙂

    • Great questions!!! When I go to the bank, I get bills, dimes and quarters on purpose, knowing that some of the kids need to tithe and save like 20 cents. We wrote it all out on paper, and figured it so that when I go to the bank, I know how many bills, quarters and dimes to ask for. Then we don’t have to make change during those discipline times very often.
      They must pay me out of their spending drawer. It’s just less “fun money” at the end of the month. We want them to learn not to touch savings except emergencies!!!!

  4. I’ve tried a similar idea with envelopes but they got too ratty. So now I’ve switched to their own coupon type book. The have their tabs for the areas you have listed but also a tab for something special they want to save up for. So their savings is divided into general and something specific should they have a specific item. Then they write on the tab what it is and watch their savings grow!

  5. You’re right, that little drawer box is perfect for the purpose! I don’t want to get into a theological debate with you about tithing, but I will say I struggle with the correct way to teach this to our just-turned-nine-year-old. We use mason jars, which we labeled “God”, “Save”, “Spend”, and the money goes into the jars in that order. Our daughter loves the challenge; she thinks it’s fun for some reason. But I do struggle with trying to help her understand that we’re only returning the blessings we’ve been blessed with, and that it’s not an obligation or requirement under the Law. It’s a tough line to walk, and I’m not sure we always get it right. But good on you for finding such a cute drawer set, and for trying to do what you think is right!

  6. Such good ideas, Tonya. My mom used to call the jobs that we all do just because we are part of a family……”love jobs” I love that expression for it. I think we will be trying some of this with our little guy.

  7. WOW! I am so impressed by all the thought you put into this learning process. One of the things I really wished we had done to train our children was teach them more about money. This is a great way to train your children at a young age…I LOVE IT!
    Keep up the awesome job Mommy! (& Daddy too!=)

  8. When we were little, My parents did a very similar thing. We never lost our spending money though, only privileges or time, when we did not obey. My mom would have us pay her each time she found something askew in the laundry (i.e. chapstick in a pocket, socks still inside-out, etc.). That must have been her pet-peeve. Ha ha! The one thing we grew up with and plan to add to your list of tithe, save, and spend, is gifts. We put 10% in each Tupperware container under my parent’s bed. I like having the gifts portion too so that they can learn to budget what they want to buy for mommy and daddy’s birthday, or Grandma’s Christmas gift. I love the drawers though!!! So cute. 🙂

  9. Oh I hope I don’t get in trouble for sassing… 🙂 Just wondering, what if their ‘spent’ drawer is empty and they misbehave? We keep thinking about starting something like this, but don’t know if the boys are really to that point (7, 4, 2). I love how you have it set up, but never thought about them losing money for bad behavior. I will definitely be thinking about this.

    • Haha, you aren’t in trouble at all! 🙂 We actually talked about that, thankfully it hasn’t happened, they are very motivated to keep that money in there. We talked about an IOU note taken from next allowance spend drawer, or reverting back to “regular” punishments instead.

  10. Another great idea to keep in mind for when my kiddos get older! I really like the ALLOWance theory! I hear where you are coming from on the chores and agree completely! For curiosity purposes only, because I saw something on Pinterest that looked intriguing, but leaves me conflicted because of said chore theory! Anyway, I would love to know your thoughts on the idea of having extra tasks that aren’t daily expected chores, but rather bigger jobs or jobs that are irregularly scheduled-such as say, “wash the car” or “shovel the sidewalk” with a designated amount of bonus money up for grabs as “work for hire”. Whoever does the work gets the extra money. The idea was to set a foundation of work ethic. Thank you for sharing your thoughts!

  11. My parents had the same thing except the tithe “account” where we gave to the church they saved that money and we would pick names of children from the salvation army tree at christmas that were our age and buy them gifts. Savings bonds were a big thing back then and we would get a savings bind everytime we had saved up $25.

  12. Hello,
    Just came across your blog and am hooked! I,too, am glad to see I’m not the only one who believes in the ‘no pay for chores’; they are what come b/c you live in a house as part of our family:) We don’t overindulge either with massive amounts of allowance. One dollar per year.
    I have wanted to start a ‘jar’ for sass, behavior, chores not done and this gives me the motivation! It will begin by the end of today for our almost- 5 and 8 year old girls.
    Thanks so much!

  13. What a wonderful way to teach your children! Love it! 🙂 I like the idea of charging for your “maid” services if they forget a chore. 😀 That drawer set is so perfect!! I have four children as well and will need to keep my eye out. 🙂

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