Oct '24 ā¢ Wealthy Kids Tips š¼
How I Teach My Kids the Value of Hard Work and Money š ļø
Hey Legacy Wealth Academy! I wanted to share a powerful lesson thatās made a big impact on my kidsāand I think it can do the same for yours.
Instead of giving my kids an allowance, I pay them commission based on the work they actually do. It might be small tasks around the house, but it teaches them an essential principle: you donāt get paid just for existingāyou earn it. šŖ
Not only does this build a strong work ethic, but it also opens up valuable discussions about saving, investing, and giving back. Theyāre learning financial responsibility at a young age, and the transformation has been amazing!
Here are some tips and examples to help you implement a commission system for your kids:
1. Define Clear Tasks
ā¢ Make a list of age-appropriate chores, like cleaning their room, doing dishes, or mowing the lawn.
ā¢ Assign a specific dollar amount to each task based on its difficulty or time commitment.
For example:
ā¢ Cleaning room: $5
ā¢ Washing dishes: $3
ā¢ Mowing lawn: $10
2. Set Expectations
ā¢ Have a conversation with your kids about the new system, explaining that they will be paid based on work completedānot a set amount each week. This ties income directly to effort.
3. Introduce Bonuses
ā¢ Add incentives for going above and beyond. If your child completes all their tasks without being asked, offer a bonus.
Example:
ā¢ Completing all weekly tasks: $5 bonus
ā¢ Helping a sibling with their chores: $2 extra
4. Teach Budgeting Early
ā¢ Encourage them to divide their earnings into categories, such as:
ā¢ Save: 50%
ā¢ Spend: 30%
ā¢ Give: 20%
ā¢ Example: If your child earns $20 a week, theyāll save $10, spend $6, and donate $4 to a cause of their choice.
5. Reinforce Long-Term Goals
ā¢ Teach them to set savings goals for bigger purchases like a new toy or bike. This builds patience and financial discipline.
6. Involve Them in Family Finances
ā¢ As they grow older, get them involved in bigger financial decisions, like family budgeting. This helps them understand the bigger picture and prepares them for the real world.
What other strategies have you tried? Share your tips!
Who else here is teaching their kids financial principles early on? Would love to hear your strategies! Letās inspire the next generation of wealth builders. š„
Ps. Here is a short webinar about starting your kids on a journey to financial success, and then you can request a free strategy call with one of our specialists.
#LegacyMindset #FinancialEducation #Leadership
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How I Teach My Kids the Value of Hard Work and Money š ļø
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