Closing Credit Cards + Kids Budget Update
This post is a follow-up to the original Teaching Kids About Budgeting. In that post I explain the ins and outs of how it works so you may want to read that one first.
My children start simple chores at around six-years-old so I asked my youngest, who happened to be six, if he wanted to participate in earning an income and he answered enthusiastically, “Yes!” 😊 So right now we’re offering this opportunity for our children between the ages of six and twelve. At twelve-years-old my children send flyers out for neighborhood jobs. This includes things like dog-walking, mowing lawns, babysitting, tutoring and whatever else they want to help with.
Below is a chart of their “jobs” and when they’re assigned. This list is printed out and hung in our kitchen along with the other chores (laundry, chickens, meals, etc.). The only difference is that there is a child’s name in place of “JOB.”
They’re paid $1 per day to clean one room in the main area of the house. They can “sell” their job to a sibling up to one day a week and then it would be overtime for their sibling. Overtime is anything in addition to their regular job and all overtime has to be approved by their Dad or me. They are also given two weeks of vacation pay and one week pay for sick days and personal days. 😁
- ⚪ REGULAR PAY = $1.00 per day / 6 days
- ⚪ DONATION = $0.50 per week
- ⚪ TOTAL = $6.50 per week
- ⚪ OVERTIME = $1.00 per week
- ⚪ TOTAL + OVERTIME = $7.50 (the most they can make in one week)
- ⚪ SPENDING – This account is for their wardrobe purchases.
- ⚪ SAVINGS – This account is for recreation purchases.
- ⚪ FOOD – This account is used for food they want to buy that’s not on my regular grocery list and can also include restaurants.
- ⚪ OVERTIME – This is technically not an account but it’s listed separately to show them the extra work they put in each week if they choose to do so.
And even though they have three separate accounts, they can borrow or transfer between the three of them whenever they want. I currently have an extra debit account that the three of them use for when they make purchases but I will eventually be setting up accounts for all three of them to have their own debit card.
They keep all of this recorded on their ledgers which I’ve made available in a printable version. SEE BELOW! They collect their receipts and add their overtime, if there is any for that week, and that’s it! It’s very simple and they’ve been earning incomes now for almost three months. There are definitely days where one doesn’t feel like doing their job and on those days they’re able to either take a vacation day or ask a sibling to do it and sell that day.
They’re learning not only how to earn an income and budget but they’re also learning the value of a dollar. I’ve noticed this especially when they go to buy something with their money. Because now it’s not mom or dad’s money but THEIR money! 😄