About a month ago, Marv saw these Financial Peace Junior kits go on sale on the Dave Ramsey site (we LOVE Dave Ramsey….if you have no idea who he is…you need to click HERE <— ) and we decided that although the kids are still young, we wanted to get them started RIGHT! We also figured this would give us a good idea on how to start working with them regarding finances:
Included in each kit (to name a few since I’m sure I’ll forget something…) was an activity book, crayons, parent’s guide, 3 clear money envelopes, magnets, a sticker sheet, clear vinyl “chore” stickers, and last but not least the awesome chore chart!
There were lots of pre-made chores on vinyl stickers to choose from, but I picked the ones the kids (2.5 yrs and 4 yrs) would be able to do on their own (or with a little help from me) and left the rest for later as they get bigger. The reason Marv and I decided on this Financial Peace Junior kit is #1 – we believe in Dave Ramsey and follow his financial advice for OUR finances, #2 – it makes sense to us to pay the kids based on a “commission” system vs automatically earning weekly allowances…they need to deserve it first, and #3 – this looked like such a fun, easy to follow system for the kids to grow with!
SO, how does it work? As seen above, the chore chart consists of – obviously – a bunch of chores. Going down the list, I checked what I wanted the kids to do for each day of the week (some will be every day like “get dressed,” “pick up toys,” “pick up clothes,” while others will only be every M, W, F – like “get mail” <—WITH mom! etc. We decided that each chore would be worth 10 cents and we would pay out their commissions every night before bed. (we do this every night for instant gratification for the kids whereas older kids could be paid out weekly). Usually the kids each get 30 – 80 cents a day (depending on what chores are checked for the day and how ambitious we were!). We then go upstairs to the office where we have 2 sets of “Give, Save, Spend” piggy banks. I help them allocate their commissions into their three piggies (10-ish% going into the “give,” and the rest split evenly into the “save” and “spend” piggies)
Well, this past week, we decided the kids had earned enough – so we transferred their coins from their “spend” piggies into their clear “spend” envelopes and headed to Target to let them lose in the DOLLAR SECTION! (They each had $1.10 to spend).
We must’ve spent an hour looking at eeeeevery single toy in those aisles. (aren’t those $1 sections FANTASTIC?!) Maya in particular had a blast playing with the princess wands and headbands while Milo was stuck to a yoyo.
They each finally decided on their goods – a princess notebook set (that included a pencil, eraser, pencil sharpener, tiny notepad and larger notebook) for Maya and a Thomas the Train game for Milo. They were each $3….(darn you Target!)….but we had already told the kids that they each could pick out ANYTHING in that section, which they did, so to the registers we went!
We were lucky to get a lady who was so patient with the kids! We explained what we were doing with them – that the kids had each EARNED their money and using it to purchase their own goodies and she was SO sweet with them – making them feel grown up and didn’t complain at all that they paid with so many dimes. (Since they each only had $1.10, and their toys cost $3…Marv discretely swiped his debit card to cover the difference for each of the kids 🙂 )
Next stop – Target cafe to eat a snack after our long day of $1 section shopping 😉 and to let the kids bust out their new purchases….earned with their COMMISSIONS!