allowance -- is this too complicated for a 4 yo?

[llwr]

We're talking about starting an allowance for our 4 yo.  There are a couple of things I want to teach with it:  that chores are part of being a family member, that money is earned, and that there is more to money than buying things.  So this is what I'm thinking about:

Required Chores:  These need to be done and aren't tied to money

feeding the animals (she's been doing this for a long time)

picking up after herself

Optional jobs:  She can choose to do these to earn some money

easy chores around the house like:

folding diapers

setting the table

putting her clothes into her dresser

helping bring food from the fridge to the table

helping put groceries on the check-out counter

etc.... 

We'd keep track of what she did with a chart.  Each optional job would be worth some small change so if she did a couple a day she'd end up with about a dollar a week for spending. We'd have 3 banks -- one each for disposable income, saving, and giving.  A penny from each chore would go into both saving and giving and the rest would be hers to spend.  I think this fits with what I'd like her to learn, but I'm concerned it's too complicated.  I'm open to suggestions.

[jeslynn]

I don't think it's too complicated at all. I'd use pictures maybe for a chart and then show a photo of how much money that chore earns maybe? Good luck!

[NZJMama]

We use almost the same exact system with our boys. They each have two responsiblities that they can earn money by doing each day. We have pay day on Friday and divide their money into give, save and spend jars. They are also expected to help out around the house and do things on an "as needed" basis without getting paid. I will also give them the opportunity to earn additional money if they are interested or saving up for something.

It has worked pretty well for us. My 4yo needs some reminders to do his chores, but I never make him do it. I'll say something like "oh, I see you haven't made your bed yet". After all, my goal is for him to take responsibility for himself.  I like keeping it as simple as possible so that I can be consistent. Paying them daily didn't work for us, and neither did changing out the chores each week. It also helped me to have their money jars in the kitchen where I pay them each week, just to make it quick and easy. I think the most important thing is to be consistent. 

Oh, and we only keep track Monday-Friday and each chore is worth a quarter. So if they do both chores all 5 days they end up with $2.50 that they divide into their give, save and spend jars. Any extra money is given to them when they complete the job (i.e. here's a quarter for folding the diapers). 

[pigpokey]

I don't actually do this with my kids because we don't earn money for working inside the family, it's just what we do as part of the family.

I do arrange my kids outlets for working for non-family, and I help them with their business endeavors.  So I will help them get pocket money, but I'm not going to just give it to them.

If we had a family business that they were part of, or we did home production (of food, clothes, etc. that they participated in) it would be different in my mind.

[SweetSilver]

I began allowance when dd was almost 5.  We also did not tie it to chores, not in any way shape or form.  She received one quarter each week for each year of age.  So she started with 4 quarters, with a raise of one quarter at 5.  Though I would never begin allowance with a 3yo, we did so with dd2 to make things even (3 quarters).  She had a rough time with it, seeing the quarters as toys themselves.  She worked it out, she did.  Though we have limits on buying candy the money is theirs to spend or save as they see fit.  I don't do the "spend, save, give" but not because it's not a good idea, just because we don't do it!  Dumb reason, I know.  The "Tooth Fairy" (dressed up DH, we have video!  The girls think it's hilarious...) gives an extra allowance.  They just had their first dogsitting job and netted $25 each (at 6.5 and 4.5, not bad!).  Both DH and I are self employed so we will have plenty of chances to give them some work for more money.  

     I plan to keep doing this until they start having loftier goals and can really try saving for something instead of being so impulsive.  Then we'll start talking a meaningful raise.  But the best advice I've heard, besides allowance being for the sake of learning about money, was that if it angers the parents when the child squanders money, then they are getting too much allowance.  Kids should be allowed to make mistakes with their money.  Right now the girls are paying me back for overspending at a gift shop.  They said that if they didn't visit the toy store, it would be easier to pay me back.  So far no complaints.  They're lucky I'm not charging interest!  (You can bet I will, one day!)