A parents’ guide to chores and allowance

Teaching kids solid financial literacy skills sets them up for success in their many stages of life. Early lessons about earning money allow parents, guardians, and caregivers to help kids develop responsible habits and a healthy relationship with finances. Those habits and learned skills will carry them through all their future milestones and money challenges. 

We want to provide some practical tips and strategies to help you educate your children about money. So, let’s get right to it!

What’s a good age to start chores/allowance?

Introducing chores — and an allowance payment for completion of those chores — can begin as early as preschool, around 4-5 years old. At this age, children can understand simple tasks and the concept of earning money. Starting early helps them develop a sense of responsibility and an appreciation for the value of money. As they grow, the complexity of chores and the amount of allowance can be adjusted to match their maturity and capabilities.

Teaching responsibility 

Assigning age-appropriate chores is a great start to teaching general responsibility for youngsters. Simple tasks like picking up toys are manageable for the youngest kids. As they get older, children can take on more complex chores such as doing laundry and other chores with higher difficulty. 

The following is a list of guidelines for age-appropriate chores, but keep in mind that every child is different based on their unique abilities. 

Ages 2-3

• Put toys away
• Help feed pets
• Dust with a cloth
• Put clothes in the hamper

Ages 4-5

• Make the bed
• Water plants
• Set the table
• Help with grocery shopping (small items)

Ages 6-7

• Sweep floors
• Help with meal prep (washing veggies, stirring)
• Fold laundry
• Empty small trash cans

Ages 8-9

• Load/unload the dishwasher
• Vacuum
• Take out the trash
• Help with yard work (raking leaves)

Ages 10-12

• Clean the bathroom
• Wash the car
• Cook simple meals
• Do laundry

Ages 13+

• Mow the lawn
• Babysit younger siblings
• Grocery shopping
• More complex cooking and cleaning tasks

It’s important to set clear expectations and be consistent with follow-through. Praise and positive reinforcement can motivate children to take their responsibilities seriously. By linking chores to an allowance, kids learn that effort and responsibility are rewarded, which translates to financial responsibility.

A different take

In many households, chores are a part of daily life, but not all families believe in paying out allowances for completing them. Instead, these families view chores as a shared responsibility that everyone contributes to, fostering a sense of teamwork and accountability. 

By not tying chores to monetary rewards, parents aim to teach their children the value of contributing to the household out of a sense of duty and cooperation, rather than for a monetary reward. This approach can help children develop a strong work ethic and understanding of the importance of lending a hand simply because it’s needed for the function of the family. While every family is different, this perspective offers a unique take on instilling values and life skills in children.

This doesn’t mean, however, that allowances are off the table. Some families choose to provide allowances to teach financial management and budgeting skills, independent of household chores. This approach allows children to learn the importance of saving, spending wisely, and understanding the value of money, while still emphasizing that contributing to the household is a shared responsibility.

How to decide on an allowance amount

Determining a fair allowance depends on the child’s age, the complexity of the chores, and the family’s financial situation. A common approach is to give a weekly allowance equivalent to the child’s age (for example, $5 per week for a 5-year-old). 

Another method is a performance-based allowance, where children earn money based on the completion of specific tasks. It’s important to regularly review and adjust the allowance as the child grows and takes on more responsibilities. This helps them understand the concept of earning and managing money.

Making it fun and interactive

Chores and allowance can be more fun for kids now, thanks to third-party apps and chore charts you can assemble yourself. Several apps are available to help families manage chores and allowances seamlessly, including: OurHome, Homey, BusyKid, and Chore Pad. 

If a mobile app doesn’t fit within your family’s way of doing allowances, we have a handy printable chore chart available. Consistency is key, so place the chore chart where in a highly visible area of your home, like the fridge, and keep it updated regularly. Consistency is key in reinforcing the link between doing the work on chores and receiving money.

Putting it all together financially

Teaching kids to track their finances is essential for developing good money management skills. Simple tools like chore charts and piggy banks can help younger children visualize their earnings and savings. As they get older, parents can introduce more sophisticated methods such as savings jars, allowance apps, or even a basic spreadsheet. 

Encourage kids to set savings goals, whether it’s for a new toy, a special outing, or long-term savings. By tracking their income and expenses, children learn the importance of budgeting and making informed financial decisions.

Starting financial education early can have a lasting impact on a child’s future. By introducing chores and an allowance, teaching responsibility, deciding on a fair allowance amount, and helping kids track their finances, parents can equip their children with the skills they need to manage money wisely.

We’re here to help

We’ve got a range of great savings account options at UBT, and our bankers are happy to share those options with you and your child(ren). Stop by a branch or open your youth savings account online today in less than five minutes.