Daddy Life Hacks
Is allowance really that bad? Try paying commission instead!
Hi everyone! Ed from Big Fam 9 here and It is PAYDAY!!! At the Big Fam 9 Household!
Today, we wanted to share with you the 3 reasons why we decided to pay our kids COMMISSION versus ALLOWANCE.
#1 Allowance is like welfare. Commission teaches our kids that Pay is the RESULT OF work. That money is EARNED not granted.
Growing up, I was familiar with the concept of an allowance. My sister and I were given a set amount and it was implied that this was for chores or how well we were doing in school, but we got the same amount, regardless of how much more my sister did or how much less I did.
#2 Commission teaches kids accountability. Work , you get paid; Don’t work, don’t get paid.
When ALI and NINA were 4 and 3 years old we began using the commission system. This included listing out chores on a chart and checking them off as they completed it for the week. Each task paid from $0.10 to $0.25. And they could typically make $3-4 in a week.
The kids would receive deductions if:
They didn’t do the work
They didn’t complete the task as expected
They had a bad attitude
#3 Kids can’t learn to manage money unless they have their own money to manage.
The neat thing about the kids earning their own money is that they could spend their own money. Once they understood the connection between work and income, we taught them how to make their dollars work for them.
We followed the system of giving, saving and spending.
In our household, we give the first fruits of our labor to the Lord through our Church in thanksgiving for His abundant provision.
Next, we have them put a portion away for savings. This money is for a long term goal and helps them delay gratification.
The remaining portion goes into a spending envelope. This is fluid cash that they can spend for their wants or needs immediately.
Closing:
Nearly a decade ago, great friends gifted us with Dave Ramsey’s Financial Peace Jr. and it helped us think about money in a different way. These are by no means our own techniques or original thoughts. We have had a lot of help and good information!
Early on, we followed the system to a ‘T’. Through trial and error, our own system has evolved. We don’t track every single chore anymore. The kids have become pretty consistent and know what is expected. We also went from a weekly payday to a monthly payday.
Confession here: We have been late on payments because we forgot to take money out of the bank or didn’t get enough small bills AND our workers have threatened to strike!
But, there is an understanding in our home: If you’ve done your work and done it well, you will get paid. And everyone in the family has an important contribution to make. Or as Big Fam Mama likes to say: “Teamwork makes the dream work!”
The whole point is that during these early years, don’t be afraid to take advantage of these teachable moments.
Thanks so much for watching!
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Resources: Dave Ramsey’s Financial Peace Jr.
Total Money Makeover by Dave Ramsey
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