Money… How to teach kids to save and be responsible… Teaching tithing… Buying higher cost items…
We’re big fans of Dave Ramsey here, and want very much to teach our kids responsibility and biblical principles when it comes to money. Well, as our kids got older and wanted to buy things, we didn’t want to just she’ll out the money for them. But, they were too little to actually earn money. We don’t have any family members who give the kids money for gifts, so we had to come up with a plan for helping our kids learn to manage money.
Here’s what we’ve come up with…
THE FAMILY LEDGER
It may seem a bit complicated, but hang with me and it will (hopefully) make sense….
1. The kids had chores. Daily. They get completed daily. It’s not optional. They complete them because they live here and we’re a team, and our house would cease to function without their help!
They also can do extra jobs for more money. Sometimes we’ll do wacky challenges for money – like run 30 miles in a month and earn $30. We usually do that one in late fall for a little extra money to purchase Christmas gifts.
The lawn is a separate required job that is in it’s own pay category.
2. Once a month they get paid for their chores and extra jobs. They get $40 a month. Of that, $16 is for spending, $4 is for tithe, and $20 goes into long term savings. The savings is for big things – a car…. College… Big travel…
3. Other jobs are paid and are broken down similarly between spending, saving, and tithe.
4. The lawn is mowed about once a week. We pay $10 for the front, and $10 for the back. That is CAMP MONEY. Only. We don’t pay for camps. The kids have to earn the money. They both need to earn about $240 for camp, so it works out well.
We used to pay cash. That quickly turned into a complete nightmare for me. I would forget… We’d get behind a month or two… The kids forgot to take money to the store… I’m sure some money got lost in hone house. ARGH!!!!
Hence, the FAMILY LEDGER.
* Each month has an entry. No problem if we don’t catch up for a couple of months, because it’s easy to update it.
* When the kids want to buy something, we pay for it, and then account for it in the ledger. The kids are great about bringing me the ledger to account for a purchase. Super simple.
*If the kids get money for something, they can give me the cash and I enter it into the ledger. No cash lost. Easy peasy.
*I haven’t done it yet, but once a year we plan to drop the “savings” into their actual bank accounts.
*The tithe is also done automatically, so that’s accounted for monthly.
Overall, we find this system super simple to manage and a thousand times easier to manage than cash! The kids earn money, they have some money to spend, they’re learning to tithe and save… It’s great for us!
Starts at Eight http://www.startsateight.com/2014/09/finishing-strong-homeschooling-middle-high-school-years-29/
Raising Homemakers http://raisinghomemakers.com/2014/homemaking-link-up-190/h