- Premier America
Have you ever seen your child’s face light up after getting their first dollar from doing chores? That little moment of pride is more than cute—it’s a valuable teaching opportunity. When kids earn money through helping at home, they begin to understand a powerful life lesson: money doesn’t grow on trees—it comes from effort!
Whether it’s making the bed, feeding the dog, or taking out the trash, assigning small jobs in exchange for small rewards helps kids build a strong foundation for financial responsibility.
What Is a Chore-Based Allowance System?
A chore-based allowance means your child earns money by completing tasks around the house. Think of it as their first job! Here’s how it typically works:
-
Parents create a chore chart with daily or weekly tasks
-
Each task is assigned a value (for example: $1 for making the bed, $2 for helping with dishes)
-
Kids get paid based on what they complete—just like in the real world!
This system encourages accountability, goal-setting, and a sense of accomplishment.
Why It’s a Big Deal for Little Learners
Giving kids the chance to earn and manage their own money helps build:
-
Work Ethic: They learn that effort leads to reward
-
Money Awareness: They begin to value what things cost
-
Decision-Making: They must choose—save for something big or spend now?
Once they start collecting their earnings, introduce them to the Save, Spend, and Share jars (learn more in our other Youth Month blog!) to help them organize their money in meaningful ways.
Real-Life Example: Meet Jamie
Jamie is 7 years old and wants to buy a new LEGO set that costs $25. With a chore list from mom that includes:
-
Cleaning their room ($1)
-
Walking the dog ($2)
-
Sorting laundry ($2)
Jamie realizes they can hit their goal in two weeks with some consistency and effort. That sense of earning makes the toy feel even more special—and teaches Jamie that setting and reaching goals feels great.
Want to Learn More?
Check out our podcast episode made just for families:
🎙️ How to Budget
In this episode, we explore how to introduce the idea of budgeting using everyday situations and fun examples your kids will understand.