It hit me when my daughter, Layla, walked into the dairy with $5 in her pocket and walked out with… a pink glitter slime she already owned in green. I watched her hand over her money like it was burning a hole in her pocket. Two hours later? She regretted it.
“Mum, can I have money for ice cream?”
That was our wake-up call. The weekly allowance system we’d been proudly sticking to was teaching her to spend money, not value it. She wasn’t learning budgeting. She wasn’t learning patience. She was just learning how fast $5 could disappear.
Why We Ditched Traditional Allowances
Like many parents, we started allowances to teach “money management.” But honestly? It felt more like hush money. Here’s your $5, now please stop asking me for LOL dolls.
The worst part? There were no real consequences. If she blew through it, she’d just wait for the next week. Or ask me anyway.
And that’s when it clicked: Real life doesn’t work like that. You don’t get paid just for existing (I mean, unless you’re a cat on Instagram).
So we ditched the whole thing.
What We Tried Instead: The “Family Economy”
Enter: The Family Economy.
Inspired by the book Smart Money Smart Kids by Dave Ramsey and his daughter Rachel Cruze, we turned our home into a mini economy. Our new system? Kids don’t get paid just for existing. They earn money by contributing.
Here’s How It Works:
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We made a job chart. Not chores. Jobs. Real tasks with a value next to them.
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Each job had a price. Clean the bathroom? $2. Feed the cat every day? $1 per week. Vacuum the lounge? 50 cents.
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At the end of the week, she got “paid.” We treated it like payday. Coins, jars, a tiny envelope. Whatever made it feel real.
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We taught her to divide her money. 3 jars: Spend, Save, Give.
Layla earned based on effort. Not age. Not entitlement. And for the first time? She actually started saving.
Story: The Day She Paid for Her Own Flute
After about 2 months of this system, Layla came to me with a serious face.
“Mum, I found a second-hand flute online. It’s $60. I have $43. Can you help me with the rest?”
I blinked. This was the same kid who once spent $5 on a novelty eraser.
“How long have you been saving for that?”
“Since I started feeding the cat.”
Reader, I cried.
I offered to pay the balance, but she insisted on doing two extra “jobs” the next week to make up the rest.
She didn’t just get a flute. She earned it. And she still plays it every day.
Why This System Actually Works
Kids need to see money as a tool, not just a treat. Here’s why our family economy stuck:
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It gave Layla control. She decided how much to earn, what to do with it, and how fast to reach her goals.
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It stopped the begging. When she wanted something, she had to ask herself: “Is it worth the jobs?”
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It built real-world skills. Like delayed gratification, budgeting, and math (so much sneaky math).
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It created natural consequences. If she didn’t do the job, she didn’t get paid. Simple as that.
And according to research from the University of Cambridge, children’s money habits are formed by age 7. Seven!
Source
What Experts Say About Kids & Money
Financial psychologist Dr. Brad Klontz says that giving kids “unearned” money can create unhealthy money beliefs that follow them into adulthood. “We want kids to learn the connection between work and reward.”
And a 2022 study from the University of Michigan found that kids who are taught to manage money with structure and choice develop higher financial literacy and confidence as teens.
Source
So yeah. Your kitchen job chart? It’s basically a neuroscience-backed investment plan.
Mistakes We Made (So You Don’t Have To)
Let me save you a few headaches:
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Don’t tie payment to all tasks.
I once tried to pay Layla for making her bed. She looked me dead in the eye and said, “How much will I get for brushing my teeth then?” That’s when I realised some things are just family expectations, not negotiable gigs. -
Be consistent.
I skipped payday one weekend because we were busy, and guess what? Layla skipped her jobs the next week. The system only works when they trust it. -
Make sure the jars are visible.
We tried digital tracking once. It lasted two weeks. Layla said, “It doesn’t feel real.” The moment we brought the jars back, she was back to counting her coins every night like Scrooge McDuck. -
Let them fail.
Layla once spent $9 on a glittery slap bracelet that broke in two days. I bit my tongue and didn’t say a word. Three days later she said, “Next time, I’m checking the reviews.” Lesson learned, no lecture needed.
FAQs I Always Get From Other Parents
“Isn’t this just bribing them to do chores?”
Nope. Bribery is payment for bad behavior (“Be quiet in the store and I’ll buy you candy”). This is earning money for consistent effort, like a job.
“What if they don’t want to do any jobs?”
Then they don’t get the extras. When Layla wanted a $12 water bottle from Typo, she suddenly got very interested in dusting.
“Isn’t this a lot of work for the parent?”
At first? A little. But now? It’s on autopilot. And it’s way less effort than arguing over every $2 trinket.
Final Thought: It’s Not About the Money
This isn’t really about teaching our kids to be rich. It’s about teaching them to be intentional. To think before they spend. To find pride in effort. And yes, to feel the sweet satisfaction of buying their own damn flute.
If your allowance system is starting to feel like a weekly bribe… maybe it’s time to ditch it too.
Trust me, if my 9-year-old can save better than I do? There’s hope for all of us.
Want to start your own Family Economy? Grab our printable job chart and spending jars kit [here].
