The Rachel Cruze Show - Should Kids Get Paid for Household Chores? 

Episode Date: November 20, 2024

💵 Start your free budget today. Download the EveryDollar app! Should kids be paid for doing chores? I’ll share my honest opinion. Plus, you’ll learn how to teach your kids money management from a young age. Next Steps: 🎥 Watch my video “Why Are Millionaires Leaving Their Kids Nothing?” 📙 Pick up a copy of my new kids book, I’m Glad When I Can Share Connect With Our Sponsors: 🏥 Learn more about Christian Healthcare Ministries. 🔒 Get 20% off when you join DeleteMe. Listen to More From Ramsey Network: 🍸 Smart Money Happy Hour 🎙️ The Ramsey Show  💸 The Ramsey Show Highlights 🧠 The Dr. John Delony Show 💰 George Kamel 💼 The Ken Coleman Show 📈 EntreLeadership   Ramsey Solutions Privacy Policy Learn more about your ad choices. Visit megaphone.fm/adchoices

Well, hey you guys. So as a personal finance expert who's also a mom, I get a lot of questions when it comes to kids and money, which makes sense because I think as parents, we want to raise our kids to be great adults in life. And part of great adulting is understanding how money works. And also I talk to so people that say, I wish I had known this earlier. And they're passing that on to their kids saying, if you can get this early, you can avoid so many mistakes that I made as a parent when it comes to money. So the motivation is so great. and I love the conversation. So today I'm sharing my take on whether or not your kids should get paid for household chores. It's a very hot topic these days. Stick around, hit that subscribe button, and also let me know your thoughts in the comments as we go. So typically there's two different opinions on this topic. It's either kids should never get paid for any chores around the house. They are part of the family and they should just learn to help out.

And the other side is like, no, pay kids on everything because it teaches them earning money and work ethic. There's so many great learning opportunities. So there's like these two extremes. And I'll be honest, I land right in the middle. And the way my parents always did it growing up is that we were on the commission system, not allowance. So if you work, you get paid. If you don't work, you don't get paid. But there's also a few chores you're going to do because you're part of the family. There's also a set number of chores that you can do to earn money if that's what you want to do. So again, falling in the middle, I think, is really the healthiest balance on both of them because there's such, you know, great learnings on both sides of that argument.

Now, I also want to acknowledge very humbly, and Winston and I, yeah, we're not perfect when it comes to this whole conversation. I mean, I think we're kind of inconsistent when it comes to it. You know, we try really hard and we're like, oh, yeah, you know, do this and you'll get a dollar. Like, we'll kind of do it as we go. But we have a nine, seven, and five. four-year-old and our nine and seven-year-old, I feel like, are more inclined to do chores to get paid for them because they've actually used money they've earned to buy things and they love it and it's fun. And our four-year-old, eh, he's kind of getting there. But I feel like we probably need to like button up the system a little bit more. So just give yourself grace for sure.

If you feel like, oh my gosh, we're failing at this, I get it. I mean, we're like, I'll give you a dollar if you do this. Like, we'll randomly talk about it and then I don't have a dollar. And then I'm like, oh, God, I'll keep on my notes app. I'll like keep a tally of what you've done. I mean, it can be a hot mess because life is just crazy. It really is. But again, the more consistent and the more it's talked about and played out, the better off you're going to be.

Now, in a perfect world, here's how we would typically roll things out. And obviously, this is going to be age dependent. So remember that. But any household chore that is kind of beyond the everyday upkeep. So think about like cleaning out the car or washing. the car, maybe taking care of animals, maybe going out on the porches and going outside and sweeping off, you know, the sidewalks or the porches, maybe vacuuming or dusting, pulling weeds, helping clean out some closets or get organized in a certain area. Like these things that are kind

of a little bit above and beyond, I think are great chores to pay your kids on because they're adding value that's not just like the basics, right? But then you look at the basics. So this is like, you know, Charles brings his plate to the sink. The girl's, we're trying to get to, you know, scrape it off and put it in a dishwasher, unloading the dishwasher, keeping their room clean, picking up after themselves. Like, these are things that should just be expected. So again, I see both sides of the coin of have a couple of things that they get paid on because they learn so much when they earn their own money.

They give it differently. They save it differently. They spend it differently. But also, you don't want to teach them that every good thing you do, you get paid on because no, sometimes you just have to do things because you're part of it. part of society. All right, as your kids get older, a couple things to think about. Get them a student checking account at your local bank. With this, they'll get, yes, they'll get old-fashioned checks. They'll get a debit card. But to have a student checking, your name is still over the account.

This is a great way for them to learn and understand that, you know, using their own money out of this account, having to budget for the month. You know, mom and dad, they gave us a certain amount of money every month when we were 15, and we weren't allowed to ask them for money. So if we wanted to go out with friends or go to the movies or whatever it was, buy clothes, it had to come out of this account. And if we wanted more, then we had to get a job. And trust me, Dave and Sharon Ramsey did not give us, I swear, the amount of money we really needed. They gave us a much smaller because then we had to go and get jobs, which was great, because that's the thing with your teens. Having them earn money is so great. Learning responsibility, scheduling all of that. So think about babysitting,

chick-fil-a, mowing lawns, being a hostess at a local restaurant, working at a clothing boutique, answering phones for a local business, like anything that they have to do to be accountable to someone else, or maybe they're starting their own business, you know, they're mowing lawns or something. But this idea of accountability and earning money outside the household is so good. And so many parents today, like I understand academics and sports, that's what I hear a lot. It was like, oh my gosh, we have no time. But scheduling in things that are good for your kids and your teens, it is so crucial. And finding, even if it's just like, you know, maybe one day a week or maybe it's twice a month, like whatever it is, having them do something to earn money outside

the household is so, so key. Above all, have one main goal and ask yourself this question, what will build character for my kids long term? Because every decision that we make as parents, again, we're trying for our kids to be great adults. That's an Andy Andrews quote, which I love. He's like, we're not just trying to raise good kids. We're trying to raise kids to become good adults. That's our goal to let them go out into the world and win. And if you push some to pursue something new, it is really good for them. There's something about their confidence that is built when they actually add value. So it's really key. And if you see gifts in them, encourage that. You know, mom and dad, they were big on us starting our own businesses. We had to do that. So Denise and I had this business called Your Integrity Snacks when I was 15 and she was 17.

and we like had snack, like a little snack shop at my dad's office. So we like went to all the kitchens and like we had to go every Tuesday and refill and restock everything. We had to keep a P&L sheet with all of our expenses and our profits. There's something again, you don't have to go that extreme. Thank you, Dave and Sharon. But there's something about learning new skills when you're under your parents' guidance and under their household that again just builds this character.

And so doing things that are out of their comfort zone is good. This is positive reinforcement, and it is powerful. And when they do start earning money, you want to teach them things like giving, you know, gratitude, contentment. You want to teach them to give, to save, to spend. Like what they do with their money tactically and emotionally, too, is great conversations to have. And one way to do that for your little kids is to grab a copy of my latest kids book. It's just come out and it's called I'm glad when I can share.

And this is really the jumping point. of generosity for kids, when they first can learn to let go of maybe a toy or something, share with other kids. There is something in that that they get the joy of realizing, oh, my gosh, when I share and I live with an open hand, there is such joy and happiness there than versus if I keep everything to myself. So it is just the most precious kids' books. So make sure to check it out.

I'll leave a link below. But the discussion on kids and money, it is layered. There's a lot of different topics we can talk about. but if you want to know more about this, make sure to check out my episode on why are millionaires leaving their kids nothing. So click here or click the link in the show notes if you are listening on podcasts. All right, you guys, thanks so much for listening. And remember to take control of your money and create a life you love.