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Do your kids have allowances?

I get this question a lot and I wrote a post in 2017 about the jar system, which worked really well when our kids were younger. But now that we have teenagers in the house, that has really gone out the window. So here's an update on what we're doing right now.

#1 Basic non-paid chores

These need to be done before the kids leave the house on the weekend. This has always been the case but the newest improvement has been to go into extreme detail about defining what each chore is.

For example, for cleaning your room, we listed out every action item. Make your bed, pick the items up off the floor (including under the bed and in the closet) take the trash out, replace the trash bag, take the laundry basket down, replace the laundry basket, etc. All things that seemed very obvious to us, but we were having disagreements with the kids about what the definition of a clean room is. That eliminates all of that. We typed it up and posted it on each of their doors so they can easily look at it and just make sure they knock off their items before they have us come check.

#2 Paid chores are optional, but very popular at the moment.

So especially for my 11 and 13 year old that want money to be able to spend on their own they can't have consistent, real jobs. We've tried to do babysitting and dog sitting, but they're just not there yet with things that are consistent. The paid chores have really helped with that piece and gives them opportunity to build some more responsibility within the house.

There is a list of the paid chores with the corresponding dollar amount. I keep the tally on an app on my phone. It's just a standard list app that I share with my husband. It's the same app we use for groceries, which also prevents the issue where in the past, the tally was publicly displayed and kids were erasing their sister's tally and adding to their own, as you can imagine. Having that app piece that they can't touch or really see has been helpful.

Once the kids hit $20, we will cash them out. I just didn't want to deal with smaller bills. I know people use debit cards and I would love to hear what works for you. They like the cash at the moment and that's just been easy. So we've been doing that.

We don't pay advances. We had kids saying, we want the money, can we do the chore later? That hasn't worked out so well. We have a zero advance policy, and we don't let them go into debt, we say, in the house. So they do need to do their chores up front.

#3 The last thing we do is an annual goal page.

That is the highest paid chore by far. It only happens once a year. And really, it just came from the fact that they're older now, they're a little more self-conscious. Peers have a big influence. They're less likely to get out of their comfort zone, and push themselves a little. We wanted to just have a way of encouraging that and it's something that can't just be achieved as fast as folding a load of laundry. We have this annual goal page where they document their goals over the next year that are achievable and measurable and we do whatever we can to help support them to meet those goals.

The goal with the chore system.

One of the biggest things that resonated with me when I was researching what I wanted to do with the chore system is to just remember that you're not going to be around forever. The goal really is to build age-appropriate responsibility within the house, but also with money skills, just so that they have the opportunity to make mistakes now, while the stakes are low versus when they're older, with much more serious consequences. Keep that in mind and I would love to hear what is working for you.

My name is Linda Rogers, Owner of Planning Within Reach.

Linda Rogers, CFP®, EA, MSBA is the owner and founder of Planning Within Reach, LLC (PWR). Originally from New Jersey, Linda services clients throughout San Diego county and nationwide. She leads the design of PWR's investment portfolios which utilize broad, low-cost investments that integrate environmentally, socially, and governance (ESG) factors.

Planning Within Reach, LLC (PWR) is a fee-only and fiduciary wealth management firm offering one-time comprehensive financial planning, ongoing impact-focused investment management and tax preparation services in San Diego and nationwide. PWR is a woman-owned firm that specializes in busy professionals and impact investors. Planning Within Reach, LLC and their advisors do not receive commissions and do not hold any insurance licenses or brokerage relationships.