Teaching Kids the Value of Money by Assigning Chores

Adrea Robinson

December 15, 2020

Money does not grow on trees. How many times did we hear this statement while living with our parents? Better yet, how many times have we emphasized this same statement as parents ourselves? 

No, money does not grow on trees. Someone has to commit to an occupation daily in order to secure the funds needed for survival. The missing link for kids is the fact that they do not have a job. Children are recipients of the work their parents do, and therefore, their value for money is not the same. Living in this digital age where most people swipe a piece of plastic as a form of payment for the goods and services they want and need to survive can further complicate how children perceive money. “The age of the ATM has given our children the idea that money is created on demand, so it’s no surprise that they think it’s limitless” (Teaching Kids, 2005). 

As parents, we must do more than restate the fact that money does not derive from trees. We must be transparent in our conversations about money and its significance. In addition, we must create an action plan to ensure children fully understand how money is earned and how to be good money managers.

To ensure that we produce fiscally responsible adults, parents must be sure to guide their children in the area of finance.

Step 1: Have a Conversation

The first step in this process is to have a basic conversation about money. This conversation should take place as early as the parent deems acceptable. A good place to start is why we work and how working allows us to earn an income. In addition, parents should also explain how those funds are used to pay bills and buy essentials like food, clothing, gas, etc. Kids need to know that we have responsibilities that require us to earn money.

Step 2: Assign Chores

Once children have a general understanding of money and its purpose, we can then proceed to stage two of the action plan. During this phase, children are older and can begin to complete routine chores. Chores not only provide discipline and allow a child to become more responsible, but they are also a great way for a child to earn money. 

Assign age appropriate tasks and then allow your child to work daily to earn an allowance. Developing a routine set of chores and then allowing the child to earn money along the way will motivate him or her to perform well because there is an extrinsic reward attached to the tasks. 

Step 3: Spend Some Money, Save Some Money

Of course, when chores are completed, children like adults want to receive payment for their hard work. Be sure to pay your child the fee that was established. When we pay kids their wages, this teaches them that commitments and verbal agreements should be honored. This step is extremely important because it demonstrates how they will navigate life as an adult. 

Finally, the most fun part of any person earning money is the ability to spend it! Allow your children to purchase items that they want. If the item exceeds the amount they currently possess, teach them the value of saving until they can afford to purchase what they want. This is a great lesson for kids to learn because there will be times later in life where they do not have enough money to pay for what they want. Allowing them to save up for something of value teaches patience, endurance, and goal-setting. 

Money matters because we need it to survive in society. To ensure that we produce fiscally responsible adults, parents must be sure to guide their children in the area of finance. To ensure that we instill a value for money with our children, we must: 

  • Explain how money works.
  • Reinforce lessons that develop money skills
  • Allow children to earn money completing chores
  • Provide additional opportunities for your child to earn extra cash

Works Cited

Kramer October 05, P. (2005, October 05). How to Teach Kids the Value of Money. Retrieved December 05, 2020, from https://www.parents.com/parenting/money/family-finances/teaching-kids-value-of-money/

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