Teaching Kids About Earning
"One of the most important money lessons children can learn is that money usually comes from somewhere."
Children benefit from understanding the connection between effort, work, earning and choice. Money doesn't simply appear.
Pocket money vs earned money
Some families give regular pocket money regardless of chores. Others link some or all pocket money to jobs. Others use a combination — there isn't one correct system.
Our own approach: regular household responsibilities, plus opportunities to earn additional money from bigger jobs. See it in full on Our 3-Jar Money System.
Everyday responsibilities
Not every household task needs to be paid — children are part of a family and can reasonably be expected to contribute. Keep the exact list age appropriate.
Extra jobs
Additional jobs — washing the car, mowing lawns, gardening, cleaning windows — are different from normal responsibilities. The child can decide whether the extra money is worth the effort.
This introduces an important economic idea: is the reward worth the work?
Connect work to value
Earning money isn't simply about being paid for moving around — people earn money because they provide something useful or valuable. For children this can be simplified: "you do something that someone else values, and they give you money in return."
Let children choose
The child decides whether they want to spend the time doing it — helping them understand opportunity cost and the relationship between time, effort and money.
Starting a small business
Simple ideas like selling handmade items, lawn mowing, washing cars, or helping neighbours with appropriate jobs introduce identifying a need, providing something useful, charging a price, earning revenue, and understanding costs — kept introductory, not a business plan.
Earning is not the same as free money
There's a difference between "here is $5" and "you completed this job and earned $5." Both can be useful in a child's financial education — the second introduces the connection between effort and reward. That doesn't mean parents should never give children money without work.
What to do with earned money
Earning is only the beginning. Once children earn money, bring them back to the three choices — Spend, Save, Give — because that's where the real financial decision-making starts.
Teaching fairness
Not every job should have the same payment. Some jobs take longer, require more effort, require more skill, or create more value — a good introduction to the idea that prices and wages aren't simply based on how long something takes. Keep it age appropriate.
If children are paid for every single thing they do, they may start seeing family responsibilities as transactions. It's reasonable to have some jobs that are simply part of being a family member, while extra work provides an opportunity to earn.
A simple challenge
Choose one extra job
Before starting, agree:
- What needs to be done
- What "finished" looks like
- How much it will pay
After the job:
- Pay the child
- Let them count the money
- Decide where it goes
Then ask: was the money worth the work?