Smart Money Kids

Teaching my kids money was always hard because we barely use it in its physical form. Like most Americans we often use our bank card. So when the money lessons came up in school, it was always kind of foreign to my kids. We started giving them money and allowing them to use it to buy something small at the dollar store.  But, I realized that although they now were identifying money easily, they didn’t truly understand the value of money.

Grayson: Can you buy me this?

Me: No, I don’t have money for that right now.

Grayson: Just use your card.

I knew we needed to teach them the value of money but never knew how until I got this idea from one of my instagram mom friends. It is based on Dave Ramsey’s method and so far, week 1 feels not only like a mom win but a magic week.

What is the Dave Ramsey method?

The Dave Ramsey Method teaches kids 4 money principles Work, Give, Save, Spend and opens the door for teachable moments regarding finances. The word allowance is never used. Ramsey equates allowance with welfare. I get it,  allowance does feel like entitlement. This is done by creating a chore chart where they can earn commission once the chore is completed. There are two types of chores. There are chores that have potential to earn commission and just because chores. Just because chores are done because they are a member of the family and because they love their parents. There is no monetary value assigned to just because chores.

Our Chore Chart

Our chore chart is actually a Tasks for Hire Chart. We told them that all the things on the list are voluntary. This is not a way to punish our kids but to give them opportunities to earn money. I work full time and our house is a pretty decent size. Cleaning up after 5 people can be overwhelming and continually nagging my kids to help was getting exhausting. So, when my IG mama friend shared her way of keeping her house in order using the Dave Ramsey Method – I was game.

My Tasks for Hire board has 2 parts. The first is made up of things that need to be done daily. This includes sweeping, mopping, cleaning the tables and counters. The 2nd is more in depth cleaning items like baseboards, walls and appliances. The first part stays consistent throughout the week but the 2nd part alternates between 6 zones. I then assign a small monetary value to them ranging from 25 cents to $2. Every morning we see who wants what task and give them till the end of the day to complete. Most tasks are per day except keeping their room clean. They are required to keep their room clean the entire week to earn the $2 but if they miss a day they lose the entire $2.

Week 1: Magic Week

Honestly, I didn’t think this would work in my house but thought it was worth a shot. Livi and Grayson were more than excited to see the money associated with the tasks and were signing up for as much as they could. I thought I’d have to do some unwanted tasks but they signed up for every task I put up. It felt weird at first. My role shifted from the doer of all things household to helping my kids along with my husband do things correctly. For example, my husband showed Livi what to do to keep the food from going down the drain when she was doing dishes. I was showing Grayson how to properly wash the table and counters. The second day they pretty much signed up for the same daily tasks and didn’t want our help. My husband walked into the dining room to see Grayson standing on the bench in a surf like position, cleaning the table and angling himself to see if he missed a spot, lol. It was quite a sight to see.

The second day Livi mentioned that she wanted to save to buy her own phone. My husband was impressed and made her a deal that if she saved enough to buy her own phone he would pay for her monthly service. Her face lit up and she began strategically planning her tasks and aiming to sign up for the higher valued tasks. Grayson set the same goal for himself but I’m sure it will change.

Pay Day

On Friday we let them each know what they earned.  We also had 2 jars, one for giving and another for saving. The money they had for spending went straight in their pockets. We began by helping them calculate the money to be put into the jars, ten percent for giving (tithing) and seventy percent for saving. Surprisingly they were content with the little money that remained for spending. Once again – mind blown!

Money Conversations

I love the money conversations that we have been having with our kids. We talked about saving to buy a big purchase, splitting a task meant splitting the earnings and a job half done doesn’t count and cannot be compensated. We also discussed what is a pay week and taxes. These conversations are all great money conversations that they started with us.

Mamas, I have never read any of Dave Ramsey’s books but after this magic week, I think I might. You can click the link  Smart Money Smart Kids to purchase his book.