This Parenting Coach Is Discussing How She Taught Her Kids About Finances More Effectively
The practice of paying children for doing chores around the house has been a long-standing one. According to the American Institute of Certified Public Accountants, American children receive an average of $800 per year in exchange for completing chores.
It’s meant to motivate them to help out while giving them a chance to learn how to manage their money. But what’s more likely to happen is that once kids stop receiving an allowance, they won’t have any incentive to clean up after themselves in the future.
Plus, supplying kids with a bunch of cash leads to them blowing it on candy and cheap toys. There’s no money management going on, then.
TikToker and parenting coach Lisa Bunnage (@bratbustersparenting) is discussing how she taught her kids about finances more effectively.
The most important thing is to keep allowances and chores separate. You want your children to understand that chores are just something that needs to be done.
When you live at home, you have to contribute to the household, whether it’s washing the dishes, vacuuming, or doing laundry.
You can give your children allowances, but just don’t connect them to chores. Lisa believes that all kids deserve an allowance to learn how to spend money wisely. This is how she went about it.
So when her kids were three-years-old, she did something called “Mum’s bank.” She wrote one kid’s “bank information” on a sheet of notebook paper. It included the date, description, and debit/credit balance.
On the other side of the same sheet of paper, she had her second kid’s bank information. Every Saturday morning, she would gather her kids together to go over their allowances.
N_studio – stock.adobe.com – illustrative purposes only
She showed them their new balances and explained how interest works. When they saved up $100, Lisa rewarded them with $10. If they managed to get to $900, she’d give them $90.
At the $1,000 mark, she gave them $100 of interest. However, she never provided them with cash because all their money was in Mum’s bank.
So whenever they wanted to spend any money, they would go to her and tell her what they wanted to buy.
They discussed how much their balances would go down if they made this purchase and how many more months it would take to make the money back and get more interest.
After hearing the numbers, they would often change their minds about the purchase. But sometimes, they would decide to go ahead with it.
These discussions helped them make conscious decisions toward their spending and weigh what’s worth spending money on.
When Lisa’s kids turned fifteen and got part-time jobs, she put their money in a real bank, and from then on, they were on their own with money management.
In the end, they learned to understand and respect money from a young age and developed strong skills in finance.
@bratbustersparenting Keep allowance and chores separate. #allowance #chores #parentingteens #parents #parenting #parentingwisdom #teenagers #parentingstyle #parentingstyles #behaviormanagement #parent #parentadvice #parentingadvice #howtoparent #tipsforparents #calmleadershipparenting
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