Teaching Your Children the Value of a Dollar

Over the years many parents have repeatedlythe bathroom, taking out the trash, cleaning the dinning
lamented that their children just do not know the valueroom, making good grades etc. (grades are the payoff,
of a dollar. Comments like... "They think money growsor pay check, for your child's work. They should not
on trees!", "They really believe I am a mommy mat",get paid again for A's or B's...sure would be nice if that
"They want to have expensive stuff so their pals willhappened to us at work - get paid for getting paid!)
think we are rich." Somehow most parents continue to6. If your child needs money at the last minute to go
give their kids money after trying to repeat speechsomeplace with their friends but they are broke, do not
number 79 about how we are not made of moneygive it to them. Instead discuss with them how they
and after many crocodile tears.can come up with the extra cash, and if the mood is
There is a way to teach the value of a dollar but itok, do some brainstorming. It is not up to you to get
takes courage and trust that what you are teaching isthem out of a tight spot because they did not save
what is being learned. Simply give them the money!any of their allowance.
Well, it is not that simple but it is close. I will start by7. Discuss with your child how to save and the
stating that to learn how to respect money we havebenefits of planning ahead. Let them find out through
to have it. If your pocket is always empty eitherexperience what happens when you don't set
because you keep spending it or you never get it wesomething aside.
are not learning the value of a dollar.8. Initially your child will think 30+ dollars per week is just
Most parents eventually give their kids an allowance.super. Their friends only get 5 dollars! But hey will
Then they begin to negotiate with their kids over theirquickly learn the value of a dollar if you take the steps
homework, extra privileges, cleaning their room etc. byabove.
holding their allowance hostage. What I am going toIf you institute this plan you will learn, like many parents
suggest is that your kid should be getting theirhave, that you will actually spend less on your kids
allowance regularly regardless of grades, their room, oreven though you are giving them a pretty big
their poor behavior.allowance.
Allowance just becomes another battlefield thatNote: This will only work if you are consistent in your
unnecessarily occupies your time, energy, andapplication of the rules. Anything less, your child wild
emotions. To make it easier here is how you introducebegin to find ways to negotiate with you. I am
the idea of an allowance and some rules that youreminded of good friends that had a 15 and 16 year old
need to be very clear about and even put into writingdaughter. They regularly paid them to do chores, for
with your and your child's signature:their grades, and any time the girls needed money.
• Begin by estimating how much you spend on yourOne day the family was selling the home and need the
child per week. Include everything; clothes, food,living room vacuumed. The parents asked the girls to
hobbies, outings with friends, school lunch, games etc.do this task. Their response was "What is it worth to
• Whatever amount you arrive at consider aboutyou?". I was stunned because not only did they come
50-70% as the amount your child will receive as anout with this question but the parents negotiated
allowance. Now before you have a heart attack keeppayment! Often what we think we are teaching our
reading...children is not what they are learning. By paying for
• Let's say for our discussion that you arrive at 30their "services" over the years, the girls have learned
dollars per week as the amount of the allowance.that in order for me to do something for you there
Most parents will say you are crazy for evenmust be something in it for me.
considering such an extravagant amount. When youTips:
offer this allowance to your child give them the• Buy clothes and other stuff for you kids when it is
following rules:appropriate such as Christmas, birthdays, or graduation.
1. They cannot ask for any additional money forAny other time they want clothes, especially those
anything.brand name items, they will have to use their savings
2. If they spend all of their money within the first couplefrom the allowance.
of days there will be no more until the next allowance• When your older child or teen wants to buy back
day.to school clothes and it is always a fight give them
3. They are responsible for lunch at school, going outwhat you are willing to spend on those clothes. They
with their friends, buying clothes, entertainment, comiccan shop on their own and if they buy one really
books, toys, concert tickets etc.expensive shirt and pants, that is all they will have to
4. They can earn extra money by doing work that iswear to school. Again they will learn from their own
normally your responsibility such as washing the car,experience how to shop better.
mowing the lawn, pulling weeds, cleaning your room.Experience is not the best teacher, it is the only
5. They will not get paid for doing their chores whichteacher.
includes washing dishes, cleaning the kitchen, cleaning