Chore money

What It Means

Chore money is money a child earns by doing jobs around the house. Families set it up in different ways: some pay for everyday chores, while others keep regular chores as part of living in the family and pay only for bigger or extra jobs. Utah State University Extension suggests thinking twice before tying a whole allowanceAllowanceA set amount of money a child gets on a regular schedule to manage, often with an agreement about what it has to cover. See more to chores, and paying instead for extra-large jobs such as washing windowsWindow cleaningWashing window glass, inside and out, so it's clear and streak-free; window makers suggest doing it at least twice a year. See more or raking leaves.

How It Sounds at Home

• "You get five bucks if you wash the car."
• "Making your bed doesn't count, that's just living here."
• "Can I rake the leaves for money this weekend?"

The Breakdown

Worked example. Ben is 1010,000 stepsA popular daily step goal that began as the name of a 1960s Japanese pedometer; later studies find health benefits begin well below it. See more. Making his bed and clearing his plate are everyday jobs and aren't paid. His parents agree on a small base allowance and a short list of extra jobs with a price for each (example amounts):

What the result means. Ben's $43 has two parts. The $12 base arrives whatever happens and gives him money to practice budgetingBudgetA plan for a set period, usually a month, that lists the money you expect to receive and how you'll spend or save it. See more with, and the other $31 moves with the work he chooses to do. Writing the prices down ahead of time, and agreeing what counts as extra as the CFPB suggests, keeps the deal steady from week to week.

Good to Know

Utah State University Extension points out that tying an allowance to chores may not work for every child, since some parents want chores to be part of belonging to the household, and suggests paying for extra-large jobs instead. The CFPB's Money as You Grow page on earning suggests talking about what counts as extra in your family and how your child can earn it. According to the FDIC's guide to teaching young people about money, extra chores and, for older kids, jobs like babysitting or a paper route are ways children learn the value of working for money. Pick jobs that match your child's age and abilities.

Related Terms and Categories

• Allowance

  A set amount of money a child gets on a regular schedule to manage, often with an agreement about what it has to cover.

• Spend save give jars

  A way of teaching kids about money by splitting each allowance or gift into three jars: one to spend, one to save and one to give away.

• Financial literacy for kids

  The money skills, habits and knowledge children build over time, from waiting for something they want to budgeting, saving and weighing choices.

Household money and budgeting